10/07/2021
Highlights from the 2021 CFMA Rocky Mountain Regional Conference
RubinBrown recently attended the 2021 Rocky Mountain Regional Conference. The following are some highlights from the event/sessions:
Anirban Basu, always engaging, provided the audience with lots of data and analytics about what the construction industry has experienced, specifically in the last 18 months since the onset of the pandemic. The trends seen in the industry differed by both niche and geography, especially in light of differing levels of pandemic-related restrictions to economies and changes in corporate and household behaviors. Overall, construction has fared better than a lot of industries. While some commercial construction has slowed, residential construction has soared during the pandemic. According to Mr. Basu, indicators from design firms and architects in the last 6 months show signs of strength down the road in commercial and industrial projects as well. Additionally, the overall confidence index in construction has been improving consistently over the past 6 months, nearly back to pre-pandemic levels of confidence. While the pandemic has been very challenging, Mr. Basu pointed out that the most significant issue continues to be the same as before the pandemic, labor. The conference also presented options for leadership CPE including communication and team building at the executive level with Mike Butler (The Executive Guide). The session addressed different means in which businesses can build trust and perform at high levels. The event included an M&A update by FMI which illustrated both recent transactions and stories focusing also on different strategies used by businesses considering transitions/exits including factoring in potential tax law changes and pending impacts from the pandemic. The conference once again welcomed RubinBrown’s Tony Nitti to address the business tax landscape including a dive into the latest negotiations and speculation coming out of Washington DC. Takeaways from the presentation focused on potential changes to rates including capital gains, and other potential modifications to tax corporate and personal rates and strategies contractors should consider. The conference also included an ethics presentation by former CFO of Enron, Andy Fastow. The audience was engaged in learning more about the failure of Enron many years ago. Fastow told many stories explaining how he and their team were wrong and how quickly an organization can head down the wrong path focusing on results and misleading stakeholders while believing they were actually following the rules. The presentation focused on principles versus rules and it was interesting to hear the former CFO’s perspective. The event included a credit panel consisting of both surety and banking professionals. The panel addressed the changing environment and impacts to contractors. This interactive session brought questions from the audience on seeking strategies to work with sureties and bankers in both good times and tough times. Finally, there were presentations dedicated to emerging technologies in construction. Innovation in the industry seems to be moving more quickly, and it is clear that companies not focused on improving their technology or improving how to apply it are at a competitive disadvantage.
We look forward to seeing you at this event next year! If you have any questions, please contact your RubinBrown advisor.
Back To Top
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 09/21/2021
RubinBrown Welcomes Greg Thomas as Partner
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently welcomed Greg Thomas as a Partner in National Tax.
09/14/2021
Focus on Healthcare: Provider Relief Fund Update- 60-Day Reporting Grace Period, New Round of Funding Announced
As previously communicated, healthcare providers who received more than $10,000 of Provider Relief Fund (PRF) payments from the department of Health and Human Services (HHS) on or before June 30, 2020, are required to report on their use of the funds by September 30, 2021.
09/01/2021
FASB Issues Guidance For Lessors With Certain Leases With Variable Lease Payments
The FASB has issued ASU 2021-05, Lessors – Certain Leases with Variable Lease Payments.
09/01/2021
GASB Issues Revised Proposed Concepts Statement For Notes To Financial Statements
The GASB issued a revision to a Revised Proposed Concepts Statement related to the notes to financial statements.
09/01/2021
GASB Proposes Omnibus Statement Addressing Wide Range Of Practice Issues
The GASB has issued an Exposure Draft to provide some additional guidance regarding practice issues that arose during implementation and general practice relating to certain recent pronouncements and other relevant practice issues.
08/30/2021
Focus on Healthcare: Provider Relief Fund Update- Initial Reporting Deadline Approaching
This is to serve as a reminder and update on previous communications regarding the Provider Relief Fund.
08/16/2021
Focus on Taxation: Employee Retention Credit Update
Long-awaited additional guidance on the Employee Retention Credit (ERC) was recently provided in Notice 2021-49 covering changes to the credit for quarters three and four of 2021, as well as general guidance for all quarters on a few gray areas.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 08/13/2021
RubinBrown Combines with Liberty Technology Advisors to Expand Technology Consulting Services
RubinBrown LLP, is joining forces with Chicago-based Liberty Technology Advisors, John F. Herber, Jr., CPA, CGMA, chairman, RubinBrown, and Joel Schneider, president, Liberty Technology Advisors jointly made the announcement.
08/11/2021
The Importance of Benchmarking in Construction
Benchmarking is a method used to evaluate or check performance by comparing to an industry standard or other data.
You may think your bid win rate is “really good,” but what defines really good? Should you be comparing against your competitors or your previous experience? To really see if the win rate is truly where you want it to be, you might consider doing both!
There are several reasons every construction company should be doing at least some basic benchmarking. It’s a clear way to set business goals that are measurable. You can monitor the results and hold your team accountable. Another bonus, it should help motivate your employees because they see a clear goal that is hopefully attainable, but also stretching their abilities. It’s an opportunity to take a step back from the daily grind and discover new ways of working, new ways to boost financial performance and just get the team thinking strategically. It can help you make strategic decisions for the future, improve productivity across employees and functions, and potentially help identify and reduce costs. It might also give you a quick insight into your company’s processes and areas where you could improve.
What benchmarks can you use?
First, you need to find benchmarks that are truly comparable to your construction company. Sometimes this is easier said than done, but there are resources out there where you can pick and choose relevant statistics. Don’t forget to use your company’s historic results, as well, to benchmark against.
Some benchmarks we find helpful and you might consider would be the following:
Backlog to working capital Backlog to G&A – How many months of overhead expenses will be covered by your backlog? Gross profit per FTE Net over/underbillings to revenue Net over/underbillings to equity Stockholders’ equity to revenue Gross profit on completed and in-progress jobs Gain/fade analysis on jobs Finally, don’t forget your more commonly used ratios (e.g. return on equity, return on assets, current ratio, etc.)
As always, reach out to your trusted RubinBrown advisors if you have any questions on benchmarking!
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134
Back To Top
08/03/2021
Highlights from the 2021 CFMA National Hybrid Conference
RubinBrown recently attended the 2021 CFMA National Hybrid Conference. The following are some highlights from the event/sessions:
CFMA once again welcomed Sage Policy’s head economist Anirban Basu. Mr. Basu, always engaging, provided the audience with lots of data and analytics about what the construction industry has experienced, specifically in the last 14-15 months since the onset of the pandemic. The trends seen in the industry differed by both niche and geography, especially in light of differing levels of pandemic-related restrictions to economies. Overall, construction has fared better than a lot of industries. While some commercial construction has slowed, residential construction has soared during the pandemic. According to Mr. Basu, indicators from design firms and architects in the last 3-4 months show signs of strength down the road in commercial and industrial projects as well.
The conference also presented options for leadership CPE including engagement of employees and building teams through the life cycle of employment. The topics addressed different means in which businesses can integrate practices during different phases of an employees’ experience to strengthen the engagement of the work force.
CFMA also included multiple sessions addressing different technology topics including “Top 10 Questions CFOs should ask about IT” and various construction technology forums focusing on different software platforms. These sessions addressed different strategies to utilize platforms and develop dashboards leveraging the capabilities of the different software solutions.
CFMA also provided an analysis of its 2021 Benchmarking Results, focusing on strategies to understand your business and how it performs next to its peers. The discussion centered around key ratios and how to utilize CFMA’s tools to strengthen your business.
As usual, the conference included a tax update which focused not only on taxes but different subtopics related to stimulus available to contractors and perspectives on the transition to a new administration from the prior one that effected the largest tax reform since the 1980s.
The CFMA conference wrapped up with CFO roundtables for contractors at different size ranges as follows:
Over $100m $25m - $100m Less than $25m
The round tables provided opportunities for similar sized contractors to share information and discuss key topics and strategies related to diversity, labor/retention, materials shortages/costs, technology and other important issues.
Back To Top
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134
08/02/2021
RubinBrown Approved as Qualified Security Assessor (QSA) by the PCI SSC
RubinBrown is now a designated Qualified Security Assessor (QSA) firm. The PCI Security Standards Council (PCI SSC) has approved RubinBrown to validate an organization’s compliance with the PCI Data Security Standard (DSS).
07/26/2021
Focus on Lease Accounting: What Else You Need to Know
This RubinBrown Focus on Lease Accounting is the fourth in a series of articles on the new accounting guidance for leases, Accounting Standards Codification Topic 842, Leases (ASC 842). In this series, we will explore different aspects of the new standard. Please contact a member of your RubinBrown team for more information and ways that we may be able to help you.
07/15/2021
Focus on Colleges & Universities: Significant Changes to SFA Verification Requirements
On July 13, 2021, the Department of Education (ED) published a Dear Colleague Letter (GEN-21-05) changing the verification requirements for the 2021-2022 FAFSA processing and verification cycle, including eliminating the requirement for “V1” verification requirements by all higher education institutions.
07/12/2021
Focus on Lease Accounting: Classification and Expense
This RubinBrown Focus on Lease Accounting is the third in a series of articles on the new accounting guidance for leases, Accounting Standards Codification Topic 842, Leases (ASC 842).
07/06/2021
Focus on Colleges & Universities: New Proposed Data Collection Form Released for HEERF I, II and III
On June 23, 2021, the Department of Education posted a proposed new data collection form for HEERF I, II and III.
07/01/2021
FASB Proposes Improvements To Discount Rate Guidance For Lessees
The FASB has issued an Exposure Draft, requesting comment by July 16, 2021, related to Leases (Topic 842): Discount Rate for Lessees That Are Not Public Business Entities to provide private companies, not-for-profit entities and employee benefit plans more flexibility in how the discount rate would be determined.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 07/01/2021
GASB Releases Exposure Draft On Proposed Improvements For Accounting Changes And Error Corrections
Accounting changes and error corrections are covered in Statement No. 62: Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements.
07/01/2021
GASB Releases Implementation Guide No. 2021-1
The GASB has issued Implementation Guide No. 2021-1, Implementation Guidance Update – 2021. The GASB periodically issues implementation guidance to assist practitioners in implementing GASB Statements and to answer frequently asked questions.
06/28/2021
Focus on Lease Accounting: Components and Payments
This RubinBrown Focus on Lease Accounting is the second in a series of articles on the new accounting guidance for leases, Accounting Standards Codification Topic 842, Leases (ASC 842). In this series, we will explore different aspects of the new standard. Please contact a member of your RubinBrown team for more information and ways that we may be able to help you.
06/22/2021
RubinBrown Announces Partner Promotions in Chicago Office
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently promoted Fransiscus Ong, CPA, and Nabila, Riaz, CPA, to Partners in the Tax Services Group.
06/22/2021
RubinBrown Announces Partner Promotions in Denver Office
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently promoted Roberta “Bobbi” Brown, CPA, to Partner in the Entrepreneurial Services Group.
06/22/2021
RubinBrown Announces Partner Promotions in Kansas City Office
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently promoted David Duckwitz, CPA, to Partner in the Assurance Services Group.
06/22/2021
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 RubinBrown Announces Partner Promotions in Las Vegas Office
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently promoted Jacob Peterson, CPA, to Partner in the Tax Services Group.
06/22/2021
RubinBrown Announces Partner Promotions in St. Louis Office
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently promoted Matt Hefti, CPA, and Buck Julian, CPA, to Partners in the Tax Services Group, and Ryan Meesey, CFA to Partner in the Business Advisory Services Group.
06/17/2021
Focus on Healthcare: Provider Relief Fund Update- New Reporting Requirements
After much delay and waiting on the part of Providers who received funding, on June 11, 2021, the department of Health and Human Services (HHS) released updated reporting requirements, and related deadlines, for recipients of Provider Relief Fund (PRF) payments.
06/14/2021
Focus on Lease Accounting: Scope and Lease Definition
This RubinBrown Focus on Lease Accounting is the first in a series of articles on the new accounting guidance for leases. In this series, we will explore different aspects of the new standard. Please contact a member of your RubinBrown team for more information and ways that we may be able to help you.
06/08/2021
Focus on Taxation: Tax Highlights from Biden’s Proposed Budget Plan
President Biden recently released his administration’s FY2022 budget request, which formalizes its legislative agenda for the fiscal year.
06/07/2021
FASB Clarifies Accounting For Certain Call Options
The Financial Accounting Standards Board has issued ASU No. 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options that is intended to reduce diversity in practice in the accounting for the modification or exchange of freestanding equity-classified written call options that remain equity classified after the modification or exchange.
06/07/2021
FASB Proposes To Improve And Expand Hedge Accounting
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The FASB has issued an Exposure Draft, requesting comment by July 5, 2021, related to potential changes to fair value hedging for entities that apply the portfolio layer method (currently referred to as the last-of-layer method).
06/07/2021
GASB Issues The Annual Comprehensive Financial Report Exposure Draft
The GASB has issued an Exposure Draft that proposes to replace the previously used term and acronym for the comprehensive annual financial report with a new term and acronym, Annual Comprehensive Financial Report (ACFR).
05/26/2021
Focus on Auditing: New Audit Standards Bring Changes To The Audit Report Letter
The biggest change in auditing standards since 2012 will soon bring an entirely new look to the report letter which accompanies audited financial statements. These
05/20/2021
Closing the Gap on Affordable Housing
According to the National Low Income Housing Coalition, there is a shortage of affordable rental homes, especially for the lowest income renters. In January 2021, more than 20% of all renters were behind on rent payments. Evictions were placed on hold and may possibly be extended until households are able to pay rents again.
To fix the shortage of affordable and available housing, government funding will be needed for different states. During 2021, the government allocated funds to the Housing Trust Fund Program (HTF) and awarded funds to public housing authorities in hopes of improving the shortage of affordable housing.
The Housing Trust Fund Program is an annual block grant to states for the creation, preservation, or rehabilitation of rental housing for the lowest-income renters. The U.S. Department of Housing and Urban Development (HUD) announced on April 6, 2021, the allocation of nearly $700 million through the national Housing Trust Fund. This is an increase of approximately 47% from last year’s allocation. This funding will help states produce more affordable housing for extremely low-income households. All HTF- assisted units will be required to have a minimum affordability period of 30 years. This year’s funding, according to HUD, is expected to produce more than 5,400 additional affordable units.
In addition, in February 2021, HUD awarded more than $2.7 billion in funding to 2,900 public housing authorities (PHAs) to make capital investments in their public housing units. These grants are provided through HUD’s Capital Fund Program and allow the PHAs to build, renovate, and/or modernize public housing in their communities. Funds can also be used to complete large improvements.
HUD has delivered on urgent housing needs and laid the foundations to tackle longer-term housing challenges. Besides the accomplishments listed above, there are many more which can be located on HUD.gov. If you need assistance with matters related to affordable housing, contact your RubinBrown team.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134
Back To Top
05/18/2021
RubinBrown to Relocate Las Vegas Office
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, is moving its Las Vegas office to a new location on May 24. The announcement was made by Bryan Keller, Partner In Charge of the firm’s National Practices and Real Estate Groups.
05/10/2021
Focus on State and Local Taxation: California Partial Conformity to Federal PPP Loan Forgiveness Rules
On April 29, 2021, California Governor Gavin Newsom signed California Assembly Bill 80 (“A.B. 80”), which largely conforms to federal rules regarding deductibility of expenses paid with funds from forgiven Paycheck Protection Program (“PPP”) loans.
04/22/2021
Focus on Taxation: COVID Relief Update
While the first COVID-related legislation was enacted over a year ago, resulting programs are still ongoing or just getting started. Below is the latest on relief programs available for businesses impacted by the pandemic:
04/01/2021
FASB Issues Alternative To Goodwill Triggering Event Assessment
The FASB has issued ASU 2021-03, Intangibles – Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events to provide private companies and not-for-profit entities with the option to perform the identification and evaluation of a triggering event for goodwill impairment as of the end of the reporting period.
04/01/2021
GASB Proposes Enhanced Guidance On Compensated Absences
The GASB has issued an Exposure Draft entitled Compensated Absences. This Exposure Draft addresses the recognition and measurement guidance for compensated absences and refines the related disclosure requirements.
03/30/2021
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on College & Universities: Department of Education Releases FAQs Clarifying Lost Revenues and Timing of Expenditures For HEERF Funds
A significant change for HEERF II funds compared to the HEERF I funds is that lost revenues are now specifically considered to be allowable costs.
03/30/2021
Focus on Public Sector: The Office of Management and Budget Issues Additional Extension For Single Audits
On March 19, 2021, the Office of Management and Budget (OMB) issued Memo M-20-21, which was addressed to federal agencies. The memo contains several items, but perhaps the most important is a single audit submission extension discussed below.
03/30/2021
Focus on Taxation: IRS Issues Official Guidance on 2021 Tax Deadline Postponement
The IRS issued Notice 2021-21 to provide additional guidance on the postponement of the federal April 15 tax deadline to May 17, 2021 for individuals.
03/22/2021
Focus on Taxation: IRS Announces One Month Filing and Payment Extension for Individuals
For a second straight year, the Internal Revenue Service has delayed the April 15 tax filing deadline.
03/22/2021
Focus on Taxation: Preparing for the Shuttered Venue Operators Grant Program’s Opening Day
The Shuttered Venue Operators (SVO) grant program is slated to open April 8th after having a slow start since first established as part of the Consolidated Appropriations Act in December of 2020.
03/11/2021
Paycheck Protection Program Financial Reporting Considerations for Construction Companies
Since the inception of the Paycheck Protection Program (PPP), there has been no shortage of questions and need for additional authoritative guidance for recipients of PPP loans.
One of the aspects of accounting for these loans relates to financial reporting considerations. Should these amounts be reported as debt? Income? If income, should it be presented as gross or net of qualifying expenses?
PPP loans from the Small Business Administration (SBA) are forgivable based on meeting certain employment and expense metrics. Due to the unique circumstances of the program, and lack of one-size-fits-all accounting guidance, the financial reporting for these loans requires careful consideration. The loan forgiveness application plays a key role in this process as the timing of
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 SBA approval could be a critical factor to consider.
Depending on the timing of the forgiveness application, the loan may be presented as debt, revenue, or as a government grant under a general heading such as “other income.” Some companies could even choose to net the proceeds against related expenditures, although we are not seeing this in practice in the construction industry very often, because it can quickly become an activity trap running a portion through job cost (which will impact revenue recognition) and overhead salaries. For more information on these presentation considerations, additional resources can be found within the COVID-19 webinars included at RubinBrown’s COVID-19 Resource Center here.
The most common approach we are seeing in the construction industry is to record the loan proceeds as “Other Income” on the income statement if the loan has been forgiven or if the company fully expects forgiveness. Some larger companies with loans greater than $2 million are choosing to leave the loan on the balance sheet as a liability until they receive approval from the SBA.
Regardless of the approach taken, construction companies need to be meeting with and talking to their lender, surety agent, and other users of their financial statements to identify which presentation method is best for them.
Back To Top
03/11/2021
COVID-19: President Biden Signs Additional COVID Relief Package
On March 11, 2021, President Biden signed the American Rescue Plan Act (ARPA) into law. The $1.9T stimulus package passed Congress largely along party lines, with one Democrat voting in opposition.
03/10/2021
Focus on Cyber Security: Microsoft Exchange Attacks
The recent announcement of multiple threats to on premise Microsoft Exchange 2013-2019 Servers highlights the need for constant vigilance for internet accessible systems and applications.
03/05/2021
Focus on Taxation: Nominal Effect Defined for the Employee Retention Credit
Notice 2021-20 provides much needed guidance on the 2020 Employee Retention Credit (ERC), including a definition of the word “nominal” as it is used in in determining whether a business has sustained a partial shutdown.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 03/01/2021
FASB Simplifies How Private Company Franchisors Evaluate Certain Performance Obligations
The FASB has issued ASU No. 2021-02, Franchisors—Revenue from Contracts with Customers: Practical Expedient that is intended to ease the accounting burden on private company franchisors.
02/15/2021
Focus on Accounting Standards: FASB Votes To Issue An Accounting Alternative Related To Goodwill And The Evaluation Of Triggering Events
As reported in the tentative decisions from its February 10, 2021 meeting, the FASB recently voted to provide private companies and not-for-profit entities with the option to perform the identification and evaluation of a triggering event for goodwill impairment at the reporting date.
02/09/2021
RubinBrown Welcomes Mike Drevline as Partner
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently welcomed Mike Drevline as Partner in the Business Advisory Services Group in the Chicago office.
02/01/2021
FASB Clarifies Scope Of Recent Reference Rate Reform Guidance
The FASB has issued ASU 2021-01, Reference Rate Reform (Topic 848). Recently, the FASB has worked to try to ease the potential accounting burden of the expected move of global capital markets away from LIBOR (or another reference rate that is expected to be discontinued) as a result of reference rate reform.
02/01/2021
FASB Issues Proposed Improvement To Accounting For Acquired Revenue Contracts With Customers In A Business Combination
The FASB has issued an Exposure Draft for public comment that is intended to reduce inconsistency and diversity in practice in the accounting for revenue from contracts with customers acquired in a business combination.
02/01/2021
FASB Proposes Alternative To Goodwill Triggering Event Assessment For Certain Companies And Organizations
The FASB has issued an Exposure Draft related to potential changes to the evaluation of goodwill impairment.
02/01/2021
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Cyber Security: SolarWinds Cyber Attack
The recent intrusion of high profile government systems via the SolarWinds Orion vulnerability has gained quite a bit of media attention and is likely to dominate the cyber security news cycle for the foreseeable future.
01/28/2021
RubinBrown Welcomes Paul Nadin as Partner
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently welcomed Paul Nadin as Tax Partner in the Real Estate Services Group.
01/20/2021
Focus on Taxation: New Grant Program for Shuttered Venue Operators
Live venue operators impacted by the pandemic may find significant help in the form of a new grant made available by the December COVID-19 stimulus package.
01/18/2021
Focus on Not-for-Profits: Is Your School Eligible for Emergency Assistance to Non-Public Schools?
You might be thinking that if your organization is not a live venue or you didn’t have a significant decrease in gross receipts in 2020 vs. 2019, then the 2021 Consolidated Appropriations Act (CAA) doesn’t have a lot to offer your organization.
01/15/2021
Focus on Taxation: Employee Retention Credit
The recently enacted Consolidated Appropriations Act, 2021 (CAA) has given new life to the Employee Retention Credit (ERC) initially made available by the Coronavirus Aid, Relief, and Economic Stimulus (CARES) Act.
01/12/2021
Focus on Taxation: PPP Reopens for First Draw and Also Provides a Second Draw
Pursuant to recent COVID-19 relief legislation, the SBA announced that the Paycheck Protection Program (PPP) will reopen beginning on Monday, January 11. To give underserved and minority business owners a first chance at the $284B, community financial institutions will be the only lenders able to make First Draw PPP loans on Monday.
01/06/2021
Focus on Public Sector, Not-For-Profit, Colleges and Universities: 2020 OMB Compliance Supplement Addendum Update
On December 22, 2020, the Office of Management and Budget (OMB) released the 2020 OMB Supplement Addendum (Addendum) to address the largest new federal programs established by the Coronavirus Aid, Relief, and Economic Security
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 (CARES) Act.
01/06/2021
Focus on Taxation: Congress Strikes a Stimulus Deal
Despite several months of stalled negotiations, the long-awaited, much debated second COVID-19 stimulus package has been finalized.
01/04/2021
FASB Issues Proposal To Simplify Recognition And Measurement Of Earnings Per Share for Certain Forwards and Options
The FASB has issued an Exposure Draft for public comment that is intended to clarify and reduce diversity in practice in the accounting for modifications and exchanges of freestanding, equity-classified forward and option contracts that remain equity classified after the modification or exchange.
01/04/2021
GASB Proposes New Implementation Guidance To Assist Stakeholders With Application Of Its Pronouncements
The GASB has issued an Exposure Draft entitled GASB Implementation Guidance Update – 2021. The GASB periodically issues implementation guidance to assist practitioners in implementing GASB Statements and to answer frequently asked questions.
12/15/2020
Focus on Taxation: Considerations for 2020 Year-End Tax Planning
The 2020 election has left the future of tax policy uncertain. While Democrats maintained a slim majority in the House of Representatives, the final composition of the Senate will not be decided until two runoff elections are held in Georgia in January of 2021.
12/15/2020
RubinBrown Announces Partner Promotions in Denver Office
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently promoted Chris Daues, CPA to Partner in the Assurance Services Group. Tim McCormack, CPA, CGMA was named Partner in the Business Advisory Services Group. John Zaegel, CPA was named Partner in the Tax Services Group.
12/15/2020
RubinBrown Announces Partner Promotions in Las Vegas Office
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently promoted Joe Bogh, CPA and James Chapman, CPA to Partner in the Assurance Services Group. Thomas Butterfield, CPA was named Partner in the Tax Services
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Group.
12/15/2020
RubinBrown Announces Partner Promotions in St. Louis Office
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently promoted Jeff Barnes, CFA, CM&AA, to Partner in the Business Advisory Services Group. Chris Janis, CPA and Liz Yount, CPA were named Partners in the Tax Services Group. Brandi Lawyer, CPA was named Partner in the Assurance Services Group. Justin Lee, CPA, Aaron Pollard, CPA, CGMA and Lynnae Robinson, CPA were named partners in the Entrepreneurial Services Group.
12/01/2020
FASB Issues New Guidance On Callable Debt Securities
In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables— Nonrefundable Fees and Other Costs that is intended to clarify the accounting for certain callable debt securities.
12/01/2020
FASB Issues Proposal To Clarify Scope Of Reference Rate Reform Guidance
In March 2020, the FASB issued ASU 2020-04 – Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting.
12/01/2020
FASB Proposes Three Targeted Improvements To The Leases Standard
The FASB has issued an Exposure Draft related to Leases (Topic 842) intended to improve three targeted areas of the lease guidance.
11/23/2020
RubinBrown Welcomes Michael Abramovitz as Partner
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently welcomed Michael Abramovitz as Partner in the Tax Services Group in the Denver office.
11/19/2020
Focus on Entrepreneurial Services: Update to Form 1099
As if 2020 hasn’t brought enough changes, the Internal Revenue Service has also provided a change to the 1099-MISC form.
11/02/2020
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 FASB Issues Guidance On Presentation and Disclosures By Not-for-Profit Entities For Contributed Nonfinancial Assets
The FASB has recently issued ASU 2020-07, Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets. Prior to ASU 2020-07, there were no specific disclosure requirements for contributed nonfinancial assets other than for contributed services.
11/02/2020
FASB Issues Proposal To Simplify How Private Company Franchisors Evaluate Certain Performance Obligations
In September 2020, the FASB issued an Exposure Draft for public comment that is intended to ease the potential accounting burden on private company franchisors.
11/02/2020
Focus on Healthcare: Phase 3 General Distribution from the Provider Relief Fund – November 6 Deadline
The application deadline for Phase 3 Provider Relief is November 6, 2020.
10/26/2020
RubinBrown Welcomes Jim Marshall as Partner
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently welcomed Jim Marshall as Tax Partner in the Real Estate Services Group in the Chicago office.
10/15/2020
Focus on Taxation: Meals & Entertainment Final Regulations Clarify Deductibility
The IRS and Treasury have finalized regulations implementing amendments made by the Tax Cuts and Jobs Act (TCJA) to business related meals and entertainment deductions.
10/15/2020
Focus on Taxation: Meals & Entertainment Final Regulations Clarify Deductibility Review
The IRS and Treasury have finalized regulations implementing amendments made by the Tax Cuts and Jobs Act (TCJA) to business related meals and entertainment deductions.
10/14/2020
IRS Issues Final Regulations for Bonus Depreciation - Impact on the Construction Industry
Did you know building improvement expenditures may qualify for immediate write-off?
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The Treasury Department recently issued final regulations implementing the 100% bonus depreciation rules. Updated with the passage of the CARES Act in March 2020, 100% bonus depreciation allows businesses, including construction companies and those related to construction, to write off the cost of depreciable assets in the year they are placed in service. The rules generally apply to business assets with a recovery period of 20 years or less.
Specifically as it relates to the construction industry, is the treatment of qualified improvement property (QIP), which qualifies as bonus depreciation. QIP is defined as any improvement made to a non-residential building as long as the improvement is placed in service after the building was first placed in service, are for the interior portion of the building, do not enlarge or expand the building, are not for elevators/escalators and are not part of the internal structural framework of the building.
The final regulations require that QIP expenditures must be incurred by the taxpayer in order for them to qualify for 100% bonus depreciation.
Contractors may be able to educate building owners on potential accelerated tax deductions derived from the construction project. This can help build a stronger relationship between owner and contractor.
Construction companies should take advantage of the bonus depreciation rules to help mitigate tax liability and maximize cash flow. Please consult your RubinBrown tax advisor to navigate these new rules.
Back To Top
10/13/2020
Missouri Workforce Housing Association Panel
On Thursday, October 15, the Missouri Workforce Housing Association Panel (MOWHA) will host a panel titled, “The Credit Acceleration Pilot and the Broader Credit Climate.” The panel will discuss the new pilot program allowing developers to apply for faster delivery of credits during the 10-year credit period.
The panel will feature Missouri-based experts with national experience, including RubinBrown Partner, Tim Anderson.
When: Oct 15, 2020 12:00 PM Central Time (US and Canada) Register here.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Back To Top
10/09/2020
Focus on Private Equity: PPP Loans and Changes of Ownership
Prior to October 2, 2020, it was presumed that any entity contemplating a change in control that had received Paycheck Protection Program (PPP) funds would be required to obtain approval for the transaction from the SBA prior to sale.
10/07/2020
Focus on Taxation: Interaction between Paycheck Protection Program Loan Forgiveness and the Research & Experimentation Tax Credit
Taxpayers that received a Paycheck Protection Program (PPP) loan for which forgiveness will be sought that also claim the Research & Experimentation (R&E) tax credit must consider the potential impact PPP loan forgiveness could have on the R&E tax credit.
10/06/2020
Focus on Healthcare: Update to General and Targeted Distribution Post-Payment Notice of Reporting Requirements
On September 19, 2020, the Department of Health and Human Services (HHS) released a post-payment notice of reporting requirements aimed at the recipients of the general and targeted distributions of the Provider Relief Fund (PRF) as established in the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
10/02/2020
An Update on Opportunity Zones
Opportunity Zones, which were first introduced in December 2017 as part of the Tax Cuts and Jobs Act, were created to focus on investing in underserved communities by providing substantial tax benefits to investors.
Information and statistics on how Opportunity Zones have helped those communities was recently issued by the White House in a report dated August 2020. It is estimated $75 billion in private capital in Qualified Opportunity Funds has been invested in Opportunity Zones through 2019, of which $52 billion is considered new investments. Additionally, there was a 29% increase in equity investments in businesses who were located in an Opportunity Zone, as compared to those who were not. This increase in invested capital is expected to decrease poverty by 11%, lifting roughly 1 million from poverty.
While Opportunity Zones have helped underserved communities, there are still some areas that aren’t attracting the attention of investors. The roughly 8,700 Opportunity Zones were state designated using different criteria from 2010 census data. Because of this, Opportunity Zones that are seeing a trend towards becoming more middle class in terms of socioeconomics before any additional incentives were enacted are more appealing to investors. To combat this problem, some are looking to work with local
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 banks and/or corporations who are also wanting to take advantage of the tax benefits of the Tax Cuts and Jobs Act and meet certain obligations under the Community Reinvestment Act. Overall, the designation and investment in Opportunity Zones has made people optimistic about the upturn in underserved communities.
Back To Top
10/01/2020
RubinBrown Welcomes Jason Fellows as Partner
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently welcomed Jason Fellows as Partner in the Assurance Services Group in the Denver office.
09/29/2020
Focus on Public Sector, Not-For-Profit, and Colleges and Universities: 2020 OMB Compliance Supplement Update
On August 18, 2020, the Office of Management and Budget (OMB) released the 2020 OMB Single Audit Compliance Supplement (Supplement).
09/28/2020
Approval of 2020 Qualified Allocation Plan to Bring Back Missouri Low-Income Housing Tax Credits
Missouri’s Low-Income Housing Tax Credit (LIHTC) awards have been frozen since 2017. The approval of the MHDC 2020 Final Qualified Action Plan (QAP) reinstates LIHTC awards under a more transparent and refined program.
Before the halt of state issued LIHTCs in 2017, Missouri matched up to 100% of federal funds for approved LIHTC projects. Since then, Missouri lawmakers have lobbied back and forth with changes to legislature in order for the LIHTC program to be revived successfully. After two years of deliberation, the 2020 QAP awards Missouri LIHTCs up to 70% of the available and authorized Federal LIHTC allocations. With the 2020 QAP, MHDC created a pilot program to speed up construction and create more appeal for investors. The pilot program allows developers to redeem Missouri tax credits at the allocated, Federal LIHTC amount for the first 5 years of the redemption period, and redeem the remaining balance equally over the last 5 years. To be considered for the pilot program, two financial models must be submitted.
To more fairly allocate the 9% credits between Missouri borders, the 2020 QAP separates the “out state region” into two categories: the MSA-Rural Region and the Rural Region. The MSA-Rural Region accounts for 20% of 9% credits, and the Rural Region accounts for 28%. The 2020 QAP also caps the amount of 4% credits to $3 million per fiscal year.
In addition to the fundamental changes in legislature of the Missouri LIHTC program, the 2020 QAP changes the way Missouri
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 LIHTC applications are scored, and requires applicants to self-score their applications in an exhibit to the application. Qualifying applicants now need 100 points during phases II and III to qualify for underwriting phase IV. New scoring categories include special needs/vulnerable population, economic development, and HOME CHDO, and majority of the existing score categories have increased point maximums from previous years.
Furthermore, the application’s “Economic Impact to Missouri” section has been updated. The 2020 QAP now requires applicants to provide a detailed description of the project’s supporting economic activity, and describe how the project supports the need for affordable housing and economically impacts Missouri. The applicant provides these descriptions directly on the application, as opposed to in an exhibit as was previously done.
In conjunction with the 2020 QAP, the 2020 developer’s guide will see changes from prior years, which include establishing a minimum construction inspection fee of $13,500 and a requirement for all applicants to have an infectious disease management plan in accordance with the CDC.
While the Missouri LIHTC program has been at the mercy of state leaders, Missouri has experienced a serious deficiency in the availability of affordable housing units. With the reinstated program, developers and potential tenants are excited for the new push in LIHTC projects.
The application deadline is October 31, 2020 and rolling applications for 4% credit deals will be accepted October 1, 2020 through August 31, 2021. For more information on the changes to be implemented with the approval of the MHDC 2020 QAP, go to mhdc.com.
Back To Top
09/28/2020
Focus on Business Interruption: Update on COVID-19 Lawsuits
We have previously provided two updates on the business interruption landscape that has resulted from the COVID-19 pandemic. There were certain regulatory actions proposed several months ago, but those have been tabled or terminated.
09/21/2020
Dirty Jobs – Somebody Has to Do Them
You may recall Dirty Jobs, a television show on the Discovery Channel featuring Mike Rowe performing messy and strange jobs. As entertaining as the show was, it brought to life the reality of a serious skills gap that exists with trade jobs.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The trade skills gap has been a challenge for years and continues to be a challenge for many construction companies. Some of the frequently discussed solutions to filling this gap include adopting new technologies to improve productivity, investing in recruitment and investing in ongoing training to improve retention.
One noted challenge has been the stigma of going into trade school instead of college. So many high schools focus on college as the next step after high school. This leaves out many students who might be better suited to a career in the trades. A recent report from Harbor Freight Tools for Schools and the National Opinion Research Center (NORC) at the University of Chicago found that over 80% of voters support increased government funding for skilled trades classes in high school, but the infrastructure and resources to grow those programs is lacking. A lot more work needs to be done at every level across the board to meet the skilled labor challenges.
Several major professional organizations for the construction industry have some great resources on this topic. These include Associated Builders and Contractors (abc.org), National Association of Home Builders (nahb.org) and Associated General Contractors of America (agc.org) and their various state chapters (full map and list on AGC website). In addition, Mike Rowe has a website, mikeroweWORKS.org, which focuses on all the issues related to the widening skills gap and includes resources for anyone looking to explore the trades.
Back To Top
09/18/2020
FASB Seeks Comment On A Proposal On Determining Current Price Of An Underlying Share For Equity-Classified Share-Option Awards
In response to feedback from private company stakeholders, the Private Company Council noted that determining the fair value of traditional share-option awards at the grant date or at a modification date is costly and complex as private company equity shares often do not have an observable market price, as the shares are not actively traded.
09/14/2020
Need More Cash? Own Your Underbillings!
Strong over/underbilling management is crucial for cash flow. Improper cash flow management can lead to sour subcontractor/vendor relationships, talent retention issues, and can even lead to missed growth opportunities.
In the current environment, this concept is even more important.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 While there are many ways that a contractor can manage cash flow, one way is to avoid underbillings at all costs! Sounds simple, right? Because underbillings represent earned revenue, (which has not been billed) it represents revenue to the contractor without the benefit of the cash. This is bad for cash flow and likely generates a bad tax answer, as well. As such, it is vital to ensure that this balance remains as low as possible. Here are a few tips:
1. Discuss a payment schedule at the inception of the contract. Make sure this schedule tracks with the amount of cost that will be incurred over time. 2. Ensure your billing team, accounting team and project team are meeting frequently (at least monthly) to discuss billings. This will help with timely and appropriate billing. 3. Be INTENTIONAL about the billing process. Do not let billing become the accounting team’s process. The billing process should be owned by your executive team and include operations (project managers) and your accounting department. 4. Prior to beginning any out of scope work on a contract, ensure that your team receives a signed change order (easier said than done, but do the best you can!) This will help prevent any surprises when it comes time to bill.
As it relates to overbillings, these are almost always good! However, if your overbillings are not sitting in accounts receivable or cash, you have another problem. If your overbillings are not in cash or A/R, you either have job borrow occurring or you’re using the cash on other non-job related expenses. Comparing overbillings to cash and A/R should be a financial metric your accounting team monitors on a monthly basis. By following these steps, a contractor should see significant increases in their contract cash flow.
Back To Top
09/14/2020
Focus on Healthcare: HHS Provider Relief Fund: $5 Billion Nursing Home Infection Control Targeted Distribution
On August 27, 2020, the Department of Health and Human Services (HHS) announced the Nursing Home Infection Control targeted distribution.
09/03/2020
Focus on Public Sector: GASB Technical Bulletin No. 2020-1
The GASB recently issued Technical Bulletin No. 2020-1 Accounting and Financial Reporting Issues Related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Coronavirus Diseases.
09/01/2020
FASB Issues New Guidance On Convertible Instruments And Contracts In An Entity’s Own Equity
In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity that is intended to simplify the accounting for certain financial instruments with characteristics of liabilities and equity.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 09/01/2020
FASB Proposes Concepts For Defining Elements In A Financial Statement
The FASB has issued an Exposure Draft related to the Conceptual Framework.
09/01/2020
Focus on Not-For-Profits: Deferral of Withholding and Payment of the Employee Share of the Social Security Tax
Late on August 28th, the IRS issued additional guidance regarding the deferral of withholding and payment of the employee share of the Social Security tax as directed by President Trump on August 8th in a memorandum. As a reminder, this memorandum does not change an employee’s underlying tax obligation but rather just defers the payment of this tax obligation.
09/01/2020
GASB Issues Exposure Draft On Financial Reporting Model Improvements
The GASB has issued an Exposure Draft of a proposed Statement, Financial Reporting Model Improvements.
08/31/2020
COVID-19 and the Future of Office and Retail Space
Without a doubt, the past months have been a turbulent and uncertain time, complimented by a volatility that has not been seen since the Great Depression.
If one thing is true, it is that the pandemic caused by COVID-19 has either accelerated the retirement of industries or triggered the genesis of new business models. In the past, commercial real estate had been a strong and reliable investment with a sustainable supply of new properties, low vacancy rates, and low leverage. While a majority of these spaces maintain long-term leases (which are a useful tool to mitigate against uncertain times), the small business sector of the United States has been devastated by prolonged closures in states across the country, as the virus has rapidly spread. With these variables in mind, it’s important to analyze two areas of commercial real estate that could experience large-scale changes as a result of the pandemic. Those areas are retail and office space.
Over the past decade, brick and mortar retail has been steadily declining with the exponential growth and convenience of e- commerce. Now with the full halt that COVID-19 has inflicted on the brick and mortar sector, it appears that stores may be driven out of the “in-person” business model and forced to fight for an e-commerce presence. This will have an adverse effect on commercial real estate portfolios that have large investments in retail properties. Just to provide an idea of how devastating COVID-19 has been for the retail sector and more specifically small businesses, it is being reported that approximately one-third of small businesses in New York could be closed permanently, as federal and local assistance packages have all but run out. It should be noted that while a large portion of the retail space is being devastated by the pandemic, other segments such as warehouse distributors, grocers, hardware stores, etc., have had a growing demand and may look to expand operational space or locations. While we are likely to see a large contraction in the retail segment of commercial real estate, projects with space that can service those profitable retail spaces mentioned above will be able to mitigate the pandemic volatility.
As is the case for approximately 42% of the American workforce, working remotely has become a new way of life. In the past, the
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 remote workspace was seen as a perk but not widely embraced, as it was seen as a potential hindrance to productivity and culture. Many employers were forced to clear out their office space and shift immediately into a fully remote workspace for their employees; what was once seen as an impracticality is now the new normal. As we have navigated through the pandemic, it appears that a large portion of employers are now considering hybrid working models that allow employees to come into the office at will or for a set number of days during the week. This has led companies to reconsider the amount of office space that they will need to occupy. Although office space has been profitable for commercial portfolios, the pandemic has inserted a fair amount of volatility. Even though long-term leases are mitigating changes to occupied space, the relief will not be perpetual. To remain competitive in the changing real estate economy, property owners may lower prices to maintain as many tenants as possible. While the office space segment will not see a contraction like retail, it is likely that there will be some shrinkage. Unlike retail, this market segment appears to have far more tools at its disposal to combat a decline.
Although the pandemic has exposed weaknesses in the once bulletproof commercial real estate segment, it is important to remember that this industry is built on long-term expectations. It is undeniable that the effects of COVID-19 have been devastating, but they are not unmanageable. Much like other industries, these challenging times will force innovation in both business models and development, which will help maintain the long-term stability of the commercial real estate industry.
Back To Top
08/28/2020
COVID-19: SBA Releases Interim Final Rule Governing Forgiveness of Paycheck Protection Program (PPP) Loans
On August 24, 2020, the Small Business Administration (SBA) published an Interim Final Rule (IFR), governing forgiveness of Paycheck Protection Program (PPP) loans.
08/27/2020
IRS Issues Notice 2020-58 Extending Deadline to Meet Rehabilitation Test for Historic Tax Credit Projects
On July 31, 2020, the IRS issued Notice 2020-58 that provides additional relief to taxpayers developing projects utilizing Historic Tax Credits (HTC). Similar to other COVID-19 relief guidance, there has been an extension to meet certain timelines. The notice extends the measuring period used in satisfying the substantial rehabilitation test requirement. Projects that have a substantial rehabilitation measuring period ending between April 1, 2020 and March 31, 2021 now have until March 31, 2021 to incur enough qualified rehabilitation expenditures to satisfy the test.
This would allow projects to have measuring periods longer than the typical 24 or 60 months if they fall within the above window. This relief helps HTC transactions, and it particularly benefits projects that are experiencing delays and trying to meet the substantial rehabilitation test window of June 20, 2020 to remain eligible under the transition rule, which would allow the HTC to be claimed in the year of placement in service as opposed to claiming over five years.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 To remain eligible under the transition rule, projects can now be in service as late as December 31, 2021 as long as the project meets the substantial rehabilitation test by March 31, 2021. This significantly extends the window to complete the project, pass the substantial rehabilitation test, and still qualify under the transition rule.
RubinBrown’s Real Estate Services Group specializes in HTC and other tax credits and incentives. Please reach out to a member of the team for guidance on this and other topics, as the rules for meeting the substantial rehabilitation test are complicated, and our team has experience calculating and advising in this area.
Learn more about Notice 2020-58 here.
Back To Top
08/27/2020
Focus on Healthcare: HHS Provider Relief Fund - Update on Reporting Requirements for General and Targeted Distribution Recipients
On August 14, 2020, a notice detailing the timing of future reporting requirements was released for recipients of payments exceeding $10,000 or more in the aggregate from the Provider Relief Fund (PRF).
08/25/2020
Focus on Taxation: IRS Puts Temporary Hold on Mailing Notices to Taxpayers with Balances Due
Recently, the IRS has stopped mailing three types of notices: CP501, CP503 and CP504. These notices typically go to taxpayers who have a balance due on their taxes.
08/20/2020
Focus on Cyber Security: Security Weakness in Electronic Logging Devices (ELD)
On July 21, 2020, the FBI issued a Private Industry Notification (PIN 20200721-001) describing an industry and academic study performed on a set of self-certified ELDs identifying a number of security vulnerabilities.
08/18/2020
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 What’s Hot?…The Home Building Industry!
The home building industry came into 2020 with promising backlogs. These were driven by better than expected 4th quarter sales fueled by a strong economy and low interest rates.
Just as the spring selling season was about to start, COVID-19 hit the country. In fact, a few states were forced to close down for periods at a time as the industry was not deemed essential in some places.
Despite the uncertainty with the economy, the home building market has surged back. Record low interest rates and demand from both baby boomers and millennials has driven the industry to unexpected highs.
According to information compiled by Builder Partnerships, home building experienced increases in sales of 19.4% in May and 13.8% in June. May permits increased 12% from April and another 11.8% in June. July is expected to be equally strong. Gross margins have also remained good through this time period.
For existing homes, pending sales in May increased at a record setting pace of 44.3%, and June sales registered a 20.7% increase from May sales.
Home builders have done a particularly good job of using technology to work remotely. Despite various labor shortages, builders have been able to work efficiently dealing with various COVID-19 restrictions. There is no reason to believe the remainder of 2020 sales will not remain as strong. The main challenge will be getting the houses built. Many builders are now selling non-inventory that will close in 2021.
Back To Top
08/14/2020
Focus on Gaming: IRS Determines the Federal Excise Tax on Sports Betting Also Applies to Daily Fantasy Sports
In the near future, daily fantasy sports entry fees could be considered wagers and subject to the federal excise tax.
08/13/2020
COVID-19: Small Business Administration Publishes Frequently Asked Questions Regarding PPP Loan Forgiveness
On August 4, 2020, the Small Business Administration (SBA) published 20 new Frequently Asked Questions (FAQs) governing forgiveness of Paycheck Protection Program (PPP) loans.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 08/11/2020
Potential Refund Opportunity for Construction Company Owners
Litigation pending before the Supreme Court may repeal certain provisions of the Affordable Care Act (ACA).
The case Texas v. United States, is not docketed to be adjudicated until summer of 2021. The decision may retroactively repeal the .9% additional medicare tax and the 3.8% Net Investment Income Tax.
While the chances of the Supreme Court repealing the ACA may be low, depending on the amount of potential tax refunds at risk in 2016, the best course of action may be to file a protective claim for refund. A protective claim is an amended return requesting a refund based on the results of a pending judicial action. This claim may be filed to preserve the ability to claim refunds of additional medicare tax or the net investment income tax for 2016. Because the normal statute of limitations for refund claims is three years from the filing date of returns, it is important to act quickly to determine the need to file a protective claim of refund.
Back To Top
08/03/2020
COVID-19: New Data Collection Form For HEERF Grant Funding Proposed by The Department of Education
The Department of Education (ED) released a proposed data collection form for the Higher Education Emergency Relief Fund (HEERF) on July 29, 2020.
08/03/2020
GASB Issues Concepts For Recognition Of Financial Statement Elements Exposure Draft
The GASB has issued the first Exposure Draft in a series of anticipated Concept Statements.
08/03/2020
GASB Issues Statement On Certain Component Unit Criteria, And Accounting And Financial Reporting For Internal Revenue Code Section 457 Deferred Compensation Plans
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 GASB has issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans.
08/03/2020
GASB Publishes Technical Guidance On Accounting And Reporting Related To The CARES Act And COVID-19
The GASB recently issued Technical Bulletin No. 2020-1 Accounting and Financial Reporting Issues Related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Coronavirus Diseases.
07/30/2020
COVID-19: Missouri Non-Profit Relief and Recovery Grant Program
This week, Missouri Governor Mike Parson announced the Non-Profit Relief and Recovery Grant program.
07/27/2020
Financial Accounting Standards Board (FASB) Delays Implementation Date of Accounting Standards Codification (ASC) Topic 606, Revenue From Contracts With Customers.
On June 3, 2020, the FASB issued Accounting Standards Update 2020-05, which officially provides entities that have not yet issued financial statements reflecting the adoption of Topic 606, with the option to delay implementation by one year.
Prior guidance required adoption for private companies to implement Topic 606 for fiscal periods beginning after December 15, 2018 (2019 calendar years). Implementation now is required for private companies beginning with fiscal periods beginning after December 15, 2019 (2020 calendar years).
What are the implications to your business?
Due to the timing of the deferral of Topic 606, many contractors have already implemented the guidance. However, there are still many that have not and have elected to delay for a year. Being that the implementation of Topic 606 is not pervasive across the board, it is important to know that there may be variability when comparing with industry benchmarks. It is important to understand the pre and post-implementation changes related to certain areas unique to the construction industry, such as contract modifications, performance obligations embedded in contracts, variable consideration and the incremental costs of obtaining a contract.
Consideration of regulatory requirements, contractual reporting, and bank-related covenants will need to be taken into consideration as well. Regulators and banks may have already incorporated Topic 606 considerations into their regulations and covenants. Reconciling financial results with these entities may be tedious if an understanding of Topic 606 requirements is not present.
While the FASB has provided certain relief for Topic 606 transition, it is important to begin this process immediately to understand the implications of the contract revenue standard. This will help in implementation going forward and help in conversations with sureties, regulatory agencies, and financial institutions.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134
Back To Top
07/23/2020
COVID-19: AICPA Issues Frequently Asked Questions Document For State and Local Governments
The American Institute of Certified Public Accountants (AICPA) recently issued a nonauthoritative document, FAQs – State and Local Government Financial Statement Accounting and Auditing Matters and Auditor Reporting Issues Related to COVID-19, for the use of auditors and preparers of financial statements in accordance with Governmental Accounting Standards issued by the Governmental Accounting Standards Board (GASB).
07/21/2020
COVID-19: Dentists Now Eligible for CARES ACT Provider Relief Fund
On July 10, 2020 the US Department of Health and Human Services (HHS) announced that dentists may now apply for the financial assistance through the Enhanced Provider Relief Fund Payment Portal.
07/15/2020
COVID-19: Extension of Certain Department of Education Due Dates
Due to the impact of the coronavirus (COVID-19) pandemic, the Department of Education extended due dates for certain reports to be submitted or disclosures made available to the public required by institutions of higher education via their Electronic Announcement 2020-07-10.
07/01/2020
AICPA Clarifies Accounting For Paycheck Protection Program Loans
The AICPA issued Q&A Section 3200, which provides guidance on accounting for forgivable loans received under the Small Business Administration Paycheck Protection Program (PPP).
07/01/2020
GASB Issues Statement No. 96 On Cloud Computing And Subscription-Based Information Technology Arrangements
The GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. The purpose of Statement No. 96 is to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITA’s).
07/01/2020
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 GASB Proposes Application Guidance On Cares Act and COVID-19 Assistance
The GASB has issued a proposed technical bulletin to clarify the accounting for funds received by governments as a result of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
06/25/2020
RubinBrown Advisors Combines with Kansas City’s Wealth Management Advisors
RubinBrown Advisors, a wholly owned investment advisory affiliate of RubinBrown LLP, is joining forces with Kansas City-based Wealth Management Advisors Inc. John F. Herber, Jr., CPA, CGMA, chairman, RubinBrown, and Kevin S. McGrew, CPA/PFS, CFP®, CFA, president, Wealth Management Advisors jointly made the announcement.
06/23/2020
COVID-19: Important Reminders Regarding Paycheck Protection Program (PPP) Loans
As the June 30, 2020 deadline for acquiring a Paycheck Protection Program Loan (PPP Loan) approaches, borrowers remain faced with a number of details that may impact PPP Loan forgiveness.
06/19/2020
COVID-19: Medicaid and Children’s Health Insurance Providers - $15 Billion in CARES Funding
On June 9th, 2020, the US Department of Health and Human Services (HHS) announced an expansion of its Provider Relief Fund.
06/12/2020
Focus on Taxation: Notice 2020-43 Proposes Two New Methods for Reporting Partner Capital Accounts on Partnership Returns
The IRS recently published Notice 2020-43, which proposes two new methods for reporting partner capital accounts on partnership returns (Form 1065 or Form 8865) and requests comments on the proposed methods.
06/08/2020
COVID-19: Paycheck Protection Program Flexibility Act of 2020
On Wednesday June 3, 2020 the Senate passed H.R. 7010 which modifies “certain provisions related to the forgiveness of loans under the paycheck protection program” (PPP Loans).
06/04/2020
COVID-19: FASB Issues Delay For Leases And Revenue Recognition Standards For Private Companies And Not-For-Profit Organizations
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The FASB has issued ASU 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities, which allows for the postponement of effective dates of ASU 2014-09, Revenues from Contracts with Customers (Topic 606) and ASU 2016-02, Leases (Topic 842) for certain entities in an effort to provide much needed relief as a result of the COVID-19 global pandemic.
06/03/2020
A Message from RubinBrown
RubinBrown acknowledges the tragic and unsettling events taking place across our nation. In these difficult and painful times, we anchor our belief in a key element of our firm’s cultural foundation, Be Your Best for Others.
06/01/2020
GASB Issues Implementation Guide 2020-1
The GASB issued implementation guidance containing questions and answers intended to clarify, explain, or elaborate on various standards including, the financial reporting entity, fiduciary activities, leases, external investment pools, asset retirement obligations, and conduit debt obligations.
06/01/2020
GASB Issues Statement No. 94 On Public-Private And Public-Public Partnerships And Availability Payment Arrangement
In March, the GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangement (P3s).
06/01/2020
GASB Issues Statement No. 95 To Defer Effective Dates Of Certain Authoritative Guidance
The GASB issued Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. Statement No. 95 postpones by one year the Statements and Implementation Guides that first became effective or were scheduled to become effective for periods beginning after June 15, 2018, and later.
05/29/2020
COVID-19: PPP Loan Forgiveness Interim Final Rules
On Friday, May 22, 2020, the Small Business Administration (SBA) released two Interim Final Rules related to the Paycheck Protection Program Loan (PPP Loans) forgiveness. One focused on Borrowers and the other focused on lenders. This article will provide an overview of each rule.
05/29/2020
Focus on Business Interruption: COVID-19 Lawsuits and Legislative Developments
As stated in our business interruption piece on March 24, 2020, the global impacts of the COVID-19 pandemic have caused
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 economic losses to businesses and individuals throughout the world, resulting in litigation and regulatory activity within state governments and the federal government.
05/26/2020
COVID-19: Scenario Planning
It should be no surprise that many businesses are being negatively impacted by COVID-19, which can naturally lead to cash flow issues as income stalls.
05/21/2020
COVID-19: FASB Proposes Delay For Leases And Revenue Recognition Standards For Private Companies And Not-For-Profit Organizations
The FASB is proposing the postponement of effective dates of ASU 2016-02, Leases (Topic 842) and ASU 2014-09, Revenues from Contracts with Customers (Topic 606) for certain entities in an effort to provide much needed relief as a result of the COVID-19 global pandemic.
05/18/2020
Construction After the Shutdown
We are entering a point where everyone is thinking about getting back to work and leaving our work from home experience. That is a good thing to think about! But what is the most efficient and profitable way to do that while keeping your employees, customers and subcontractors safe? Here are a few tips to make that happen.
#1 Priority - Communicate
Many construction companies had crews working at project sites during the work-from-home mandates. However, your customers and suppliers may not have been fully staffed – particularly in the back office functions. It is extremely important to be in contact with everyone in your supply chain.
Your financial team should call (or Zoom) the financial staff of each owner or other contractors you have been working with to evaluate their current condition. You should determine if they have been processing pay apps, have they been in touch with the back office function of the owner, determine their financial state (if possible), etc. The most important determination is whether they are in a position to pay you and in what time frame.
Your financial team should also be calling your sub-contractors and suppliers. It is important for you to know if your subs have been paying their suppliers. Are your subs and suppliers in a financial position to continue doing business through the next 60 days (May and June)? If they are short on materials or supplies, how will that affect your particular jobs? You need to understand the extent of these risks as soon as possible.
Check in with your surety bond provider. If your surety has any plans for less flexibility with key financial metrics during these challenging times, its best to get an understanding of those liquidity requirements now so you are not surprised later while bidding a job.
Stay close to your bank. Many (if not all) of you were working closely with your bank during the PPP loan process. However, that
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 was money guaranteed by the federal government. Loans guaranteed by the bank itself is a different story. It is important to let the bank know what your expected borrowing needs might be over the near term (May, then June, then July). As discussed below, it is important to have a short term outlook during the start-up period. Finally, you might want to consider establishing a secondary banking relationship to ensure access to cash.
Project timelines could continue to be affected by social distancing guidelines and recommendations (i.e., crew sizes, # of crews allowed to be on site, etc.) for the foreseeable future. This not only adds time but will likely have a dollar impact to each project as well. Communication between the subcontractors, General Contractor, Construction Manager, and Owner/Owner Rep are as imperative as ever.
Communication on design changes are also important during this time. A once “open concept” design may no longer be supported going forward which could cause significant re-design and engineering on multiple fronts requiring significant communication and negotiation.
Contractor and Owner management teams may have also seen changes in their management structure which could cause additional need for more coordination and communication. This may very well be an opportunity to strengthen relationships and develop new methods for collaboration between parties.
Some construction companies have not been able to continue working during the last couple months. It is even more important for these companies to contact each link in their supply chain right now. Don’t wait for the start up to begin!
#2 Priority – Manage Cash Flow
It is important to ensure cash and working capital is sufficient to start and/or continue operations. Some tips to manage your cash include:
As mentioned above, you should first consider your short term needs when managing cash flow. Once you have assured that you will continue to be liquid over the first 4 weeks of the start-up, you can then look further out.
Your financial team should be working with project managers to prepare monthly and quarterly cash flow reports by job. Knowing which jobs are generating cash and which jobs are using your cash is critical information needed to manage cash flow for your company.
Develop a cash flow forecast by week for the next 4 to 12 weeks. This can be done in excel if your accounting software is not capable and it should take in to consideration many of the issues discussed below. Of course, this will still be a forecast. For each assumption that goes into the forecast, you should also develop a degree of probability. For example, projects that are in backlog over the next 2 to 4 weeks could have a probability of 100% - you are certain they will occur. However, the probability that your customer will pay for the work is not 100% even if you have worked with this customer for the last 30 years. Times are different.
The probability estimate applied to each assumption in your cash flow forecast will help you determine what the most likely outcome is for your business over the next 4 to 12 weeks (in this example). It will also help you understand if more actions are needed to realistically remain cash solvent. Additionally, it will show your bank that you understand your business and are realistically assessing the likelihood that future events will occur.
In the end, a cash flow forecast will provide you a road map on what you need to operate your business. It will also provide
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 peace of mind that you know where you are going and you will survive this economic catastrophe.
Talk to your bank about increasing your line of credit. Once you understand your short term cash needs, let your bank know how much working capital you expect to have over the next few months. You then will be able to discuss with the bank what the appropriate line of credit is to cover the potential pitfalls in your cash forecast.
Similar to the cash flow forecast, a sufficient line of credit based on your best estimate of cash flows will provide peace of mind and allow you to run your business with a clear mind.
Know your inventory and material requirements inside and out. This is a period of time when you want to make sure you have sufficient materials on hand or access to the materials through your suppliers. Many construction companies will be ordering replacement inventory when the economy bounces back. The supply chain will be stretched thin….think toilet paper! Don’t assume the usual lead times apply. Don’t assume that your suppliers have their normal inventory levels and are paying their own bills (see Priority #1 – Communicate).
Bill promptly and completely. Bill as much as ethically possible in the front end of jobs. Again, communication with the owner or general contractor is extremely important.
Do not rely on Insurance policies to cover pandemic costs. In many cases there is specific exclusions for event similar to this. If you think that an insurance claim may be possible, ensure that you are aware of the notice and other key policy requirements.
Really the only priority over the next few months is staying financially strong to ensure your business survives. Communication with supply chain partners, banks, surety and customers is critical to understand the road ahead. Sound cash flow forecasting management will be necessary to survive the bumps ahead!
Back To Top
05/14/2020
COVID-19: Updates to the PPP Loan Frequently Asked Questions
On Wednesday May 13, 2020 the Small Business Administration (SBA) released two updates to their Paycheck Protection Program (PPP Loan) Frequently Asked Questions (FAQ).
05/12/2020
COVID-19: PPP Loans and the Factor of Economic Uncertainty
When the Small Business Administration’s (the SBA) Paycheck Protection Program (PPP) launched as part of the CARES Act, many organizations rushed to submit their applications to qualify for these loans and hopefully future loan forgiveness.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 05/08/2020
COVID-19: Not-for-Profit Organizations: Should We Keep or Return our Payroll Protection Program Loan?
When the Small Business Administration (SBA)’s Payroll Protection Program (PPP) launched as part of the CARES Act, many not-for-profit organizations, along with other entities, rushed to submit their applications to qualify for these loans and hopefully future loan forgiveness. The sense of scarcity and urgency was high as entities were applying at the same time the SBA was working to finalize the program specifics.
05/08/2020
Focus on Public Sector: The GASB Issues Statement No. 95 to Defer Effective Dates of Certain Authoritative Guidance
On May 8, 2020, the Government Accounting Standards Board (GASB) issued Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance.
05/07/2020
COVID-19: Cloud Security Health Check
The COVID-19 pandemic has forced many organizations to rapidly adopt cloud solutions for email, office applications, collaboration and conferencing.
05/06/2020
COVID-19: Gaming and Hospitality Industry - Reopening from the Great Cessation
With the gradual reopening of gaming and hospitality facilities, RubinBrown’s business and consulting experts have outlined some of the reopening themes and suggested procedures being discussed and shared among clients and throughout industry.
05/06/2020
COVID-19: PPP Loan Funding is Not Federal Assistance
There are certainly more questions than answers related to the CARES Act funding being issued as of late.
05/05/2020
The Employee Retention Credit and the Construction Industry
Did you have a job site that was partially or fully closed by government order?
If so, your company may qualify for the Employee Retention Credit (ERC). The Employee Retention Credit allows a credit for certain wages paid to employees that are fully or partially not able to work. A closure of a single job site may qualify your company nationwide to claim this credit. The credit can be up to $5,000 per employee and can be refundable. Eligible employers that received a PPP loan cannot take the ERC. Contact us to help determine your eligibility for this valuable credit.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Read more on the Frequently Asked Questions section of the IRS website.
For more information on COVID-19 resources, visit RubinBrown's COVID-19 Resource Center.
Back To Top
05/05/2020
COVID-19: Healthcare Provider Relief Fund: Distribution of Additional $70 Billion COVID-19 Funding
In response to the COVID-19 pandemic, the US Department of Health and Human Services (HHS) allocated $100 billion dollars to healthcare providers as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES).
05/04/2020
COVID-19: Employee Retention Credit FAQ
The IRS recently published additional FAQs on the refundable Employee Retention Credit (ERC), as well as draft Form 941 for 2020.
05/01/2020
FASB Clarifies Accounting For Lease Concessions And Other Effects of COVID-19
The FASB has issued a question-and-answer document in relation to lease guidance applied in Topic 840 and Topic 842 related to lease concessions that are anticipated in many instances related to the effects of the COVID-19 pandemic.
05/01/2020
FASB Issues Accounting Standards Update – Codification Improvements To Financial Instruments
The FASB issued ASU 2020-03 Codification Improvements to Financial Instruments in order to improve guidance and correct unintended application.
05/01/2020
FASB Issues New Guidance On The Effect of Reference Rate Reform
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The FASB issued ASU 2020-04. Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting that is intended to ease the potential accounting burden as it relates to reference rate reform.
05/01/2020
GASB Issues Statement No. 93 for Transition from LIBOR
The GASB issued Statement No. 93, Replacement of Interbank Offered Rates.
05/01/2020
GASB Proposes Delayed Effective Dates of Certain Pronouncements
The GASB is proposing the postponement of effective dates of several critical upcoming GASB Statements in an effort to provide much needed relief to state and local governments as a result of the COVID-19 pandemic.
04/27/2020
COVID-19: Identifying Black Swan Events
Black swan events rarely occur, defy predictability, and usually trigger extreme consequences.
04/24/2020
COVID-19: Additional Funds for Paycheck Protection Program
The Paycheck Protection Program and Health Care Enhancement Act (the Act), recently passed and signed into law, a second round of Paycheck Protection Program (PPP Loan) funding of $310 billion.
04/24/2020
COVID-19: Small Casinos and Gaming Operations Can Now Apply for PPP Loans
The Trump administration eliminated a rule that had previously denied small casinos from accessing funds allocated for small businesses as part of the Paycheck Protection Program (PPP).
04/24/2020
COVID-19: What are These Main Street Lending Loans?
Much emphasis has been placed on the Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) Loan programs available under the CARES Act to date.
04/23/2020
COVID-19: FASB Proposes Delay for Leases And Revenue Recognition Standards For Certain Companies
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The FASB is proposing the postponement of effective dates of ASU 2016-02, Leases (Topic 842) and ASU 2014-09, Revenues from Contracts with Customers (Topic 606) for certain entities in an effort to provide much needed relief as a result of the COVID-19 global pandemic.
04/20/2020
COVID-19: Rev Proc. 2020-25 Provides Guidance On Claiming Retroactive QIP Depreciation
On Friday, April 17, 2020, the IRS released Revenue Procedure 2020-25. This guidance explains how taxpayers may now claim accelerated depreciation or bonus depreciation on Qualified Improvement Property (QIP) for tax years 2018-2020.
04/17/2020
COVID-19: CARES Act Payments to Tribal Governments
As part of the $150 billion Coronavirus Relief Fund, the CARES Act will provide payments to state, local, and tribal governments navigating the impact of the COVID-19 outbreak.
04/17/2020
COVID-19: New Report Breaks Down Details on Paycheck Protection Program
The Small Business Administration (SBA) released a report today, April 17, 2020 related to the Paycheck Protection Program (PPP) loans.
04/16/2020
COVID-19: SBA Revises Guidelines on Forgivable Loans, But The American Gaming Association Says, This Isn’t Enough
On April 14, 2020, the Small Business Administration (SBA) revised recent guidance that offered a little relief to a small segment of the gaming industry.
04/15/2020
COVID-19 Legislation: What It Means for Not-For-Profit Organizations
Not-for-profit organizations are navigating financial hardship and uncertainty caused by the COVID-19 pandemic. Fortunately, there are now numerous options available to ease these unprecedented situations.
04/15/2020
COVID-19: PPP Loan Application – Done! PPP Loan Approved – Whew! Now What?
The Paycheck Protection Program (PPP loan) was created to provide loans to help businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 04/14/2020
COVID-19: Colorado State Work-Share Program vs. the Paycheck Protection Program (PPP). Can I Use Both?
In Colorado, a question amongst businesses has recently come up related to the Colorado State Work-Share program and whether that program would nullify the federal Paycheck Protection Program (PPP). A lot of businesses are asking, could a company use both of these programs?
04/13/2020
COVID-19: Additional R&D Tax Credit Opportunities for Manufacturers During the COVID-19 Pandemic
Intensive research is underway for the development of a vaccine, rapid testing methods, and other new technologies during the COVID-19 global pandemic.
04/13/2020
COVID-19: CARES Act will Release Billions of Federal Funding into the Economy
The CARES Act will release billions of dollars in federal funding into the system to be administered by states and federal agencies.
04/13/2020
COVID-19: IRS Payroll Deferral FAQ
On April 10, 2020, the IRS released guidance on the employment tax deposit deferral that came as part of the CARES Act.
04/13/2020
COVID-19: Revenue Procedure 2020-22, Reversing a Prior Election out of the Interest Limitation Rules
On Thursday, April 9, the IRS published Revenue Procedure 2020-22, allowing taxpayers who made an irrevocable election out of the interest expense limitation of Section 163(j) as a “real property trade or business” on a 2018 or 2019 tax return to undo the election.
04/13/2020
COVID-19: Themed Cyber Attacks
Law enforcement around the world are sending out alerts warning of increased attacks and fraud attempts as the world deals with the COVID-19 pandemic.
04/10/2020
COVID-19: $30 Billion of Stimulus Payments for Healthcare Providers Being Sent Starting Today, April 10, 2020
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Today, April 10, 2020, the Department of Health and Human Services (HHS) began the delivery of $30 billion in relief funding to support healthcare-related expenses or lost revenue attributable to the COVID-19 pandemic.
04/10/2020
COVID-19: Families First Coronavirus Response Act Paid Sick Leave and Family Medical Leave Expansion
During the first two weeks of unpaid expanded family and medical leave, you may not simultaneously take paid sick leave under the EPSLA and preexisting paid leave, unless your employer agrees to allow you to supplement the amount you receive from paid sick leave with your preexisting paid leave, up to your normal earnings.
04/10/2020
COVID-19: Notice 2020-23
On April 9, 2020, the IRS released Notice 2020-23, which automatically postpones due dates for payments, returns, and form filings specified in the notice to July 15th, 2020.
04/10/2020
COVID-19: Regulatory Summary for Individuals & Families
Recently governments and business have launched various programs and changes to help those affected financially by the COVID-19 pandemic.
04/09/2020
COVID-19: Economic Injury Disaster Loan, Paycheck Protection Plan Loan or Both?
Businesses and organizations have various loan options available to help offset financial hardship and uncertainty caused by the COVID-19 pandemic.
04/09/2020
COVID-19: Revenue Procedure 2020-23
On April 8th, 2020, the Internal Revenue Service released Rev. Proc. 2020-23.
04/08/2020
COVID-19: Paycheck Protection Program (PPP Loan)
The PPP Loan was signed into law on March 27, 2020, as part the CARES Act. Although guidance on the PPP Loans are evolving, here is a summary of what you need to know.
04/07/2020
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 COVID-19: CARES Act Impact on Student Financial Aid
On March 27, 2020, the President signed the CARES Act into law. The CARES Act includes a number of provisions to assist in providing financial stability for individuals and higher education institutions through assistance payments expected to be made; however, the CARES Act also provides for some changes to compliance requirements for higher education institutions and students.
04/07/2020
COVID-19: The Impact on Hospitals and Elective Medical Procedures
Though many sectors of the economy have been brought to a halt by COVID-19, global hospitals are under enormous pressure to meet the current high demand of incoming patients suffering from this respiratory illness.
04/07/2020
COVID-19: The Public Sector Waits Patiently as the GASB Considers Postponements
The Government Accounting Standards Board (GASB) is working on several projects right now that could provide highly anticipated relief to the public sector.
04/06/2020
COVID-19: Business Owners- Are You Thinking About Selling Within the Next 3 Years? Do this Now!
The spread of the Coronavirus Disease (COVID-19) is currently causing significant economic hardship to the United States and the world.
04/06/2020
COVID-19: The Business Impact of the COVID-19 Pandemic
COVID-19 continues to impact us all across the country, and recent legislation provides support to those struggling to navigate these uncertain times.
04/02/2020
COVID-19: Potential Tax Deferral and Credit Impacts
COVID-19 has obviously sent shock waves through the global economy and disrupted, on a massive scale, normal consumer behavior patterns, stalling a bullish economy into a decline. With the passage of the CARES Act, many businesses, including those controlled by private equity, were hopeful for relief.
04/01/2020
COVID-19: Expansion of the Medicare Accelerated and Advanced Payment Program
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 On Saturday, March 28, 2020, the US Centers for Medicare & Medicaid Services (CMS) announced an expansion of its Accelerated and Advance Payment Program (APP) for Medicare providers as part of the CARES act passed by the federal government.
03/30/2020
COVID-19: Colleges & Universities and the CARES Act
With institutions of higher education being some of the earliest organizations impacted by the pandemic, the CARES Act provides some relief to institutions as well as students.
03/28/2020
COVID-19: Notice 2020-20 Extends Filing and Payment Date for Gift Tax Returns
On March 27, 2020, the IRS published Notice 2020-20, which expands relief provided previously in Notice 2020-18. The notice extends the due date for Form 709, (Gift and Generation Transfer Skipping Tax Return), as well as the date for making payments of Federal gift and generation-skipping transfer tax from April 15, 2020 until July 15, 2020.
03/27/2020
COVID-19: The Impact on the Use of Telehealth
COVID-19 has obviously caused a shock to the global economy and disrupted, on a massive scale, normal consumer behavior patterns, stalling a bullish economy into a decline.
03/25/2020
COVID-19: How Coronavirus is Impacting the Transportation Industry
What is essential business? Are my customers and essential business? Who is an essential employee? Am I an essential employee? These are questions that we did not find ourselves asking a couple of months ago but are now forced to examine.
03/25/2020
COVID-19: Phishing and Fraud on the Rise
The COVID-19 pandemic is forcing changes on us and our workforce. Working from home, expanding use of collaboration solutions, and leveraging the cloud to stay productive are all positives we can carry forward as the pandemic winds down. Along with these, we are also seeing significant increases in phishing attacks and online fraud.
03/25/2020
COVID-19: Will Reporting Deadlines be Postponed for Governments?
The effect of COVID-19 on the public sector is constantly evolving, and as a result, state and local governments continue to adapt and react every day. One thing is certain: there will be several tangible and intangible effects on local governments as a result of
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 COVID19.
03/24/2020
COVID-19: Business Interruption and the Impact to Your Business
Business owners may have options to help them weather the storm during these unprecedented times.
03/24/2020
COVID-19: IRS Provides Additional Guidance of Blanket Extension of April 15 Tax Deadline to July 15
Last Friday, the IRS superseded and expanded guidance issued earlier in the week by giving certain taxpayers an extra three months to file and pay their taxes.
03/23/2020
COVID-19: Federal Emergency Declaration Opens Door for Employers to Make Certain Tax-Free Payments to Employees
With President Trump having issued an “emergency declaration” related to the COVID-19 pandemic, the IRS delayed tax season until July 15th by relying on Section 7508A(a) of the Internal Revenue Code, which can only be done when there is a “federally declared disaster” pursuant to Code Section 165.
03/23/2020
COVID-19: How Coronavirus is Impacting Not-for-Profit Organizations
On March 18, 2020, President Trump signed into law the Families First Coronavirus Relief Act (Act). The Act has many provisions impacting individuals, families, employees and employers.
03/21/2020
How Coronavirus is Impacting the Construction Industry
COVID-19 (officially SARS-CoV-2 or also referred to as novel Coronavirus) is disrupting everyday business and life as we know it.
The United States Treasury Department announced that it would be pushing back the April 15 deadline to file tax returns and pay taxes owed on that date by 90 days, giving Americans three extra months to pay their 2019 income tax bills. This gives millions of individuals and C-Corporation businesses extra time needed to pay these out-of-pocket costs in light of COVID-19.
Treasury Secretary Steven Mnuchin explained that with this new regulation, the IRS, under President Trump’s national-emergency declaration, will also waive interest fees and penalties. Individuals and businesses should file their taxes as normal, if they can, and they will not incur interest or penalties on amounts due.
On Wednesday, March 18, IRS notice 2020-18 granting relief was released. The notice confirms the 90 day extension included in the Treasury Department announcement. The notice further clarified that the relief provided by the extension is available to be applied to first quarter 2020 estimated income tax payments in addition to Federal income tax owed for the taxpayer’s 2019 tax year. As a result, payments of this nature due by April 15 are subject to the relief covered by the IRS notice. All taxpayers are also
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 granted an automatic 90 day extension of time to file until July 15, 2020.
The announcement did not provide guidance on payroll taxes and their respective due date. Uncertainty also remains around whether 2020 second quarter estimated taxes are expected to be paid by the normal June 15 deadline or if they will be deferred as well.
In a time surrounded by uncertainty, the extension will at least provide cash flow relief to both businesses and business-owners as many will qualify for the extension.
The construction industry faces additional challenges due to the on-site necessity of work performance and constraints on the extent of social distancing that can be practiced within the labor force on an active job site.
Furthermore, supplies are imported from a variety of international suppliers and disruption to the manufacturing industry both domestically and abroad will impact the availability of supplies necessary to complete projects, while also increasing the cost. It is critical for project management teams to analyze current supply chains to assess the exposure to disruption within those supply chains that ensues.
Labor and material challenges often lead to project delays and cost overruns presenting budgetary and profitability challenges to project management.
As many business interruption policies limit coverage to interruptions related to natural disasters with disease not included in coverage, companies are left wondering how they can mitigate risk exposure.
One possible form of relief for contractors is the force majeure clause that is included in certain contracts. The term itself may not be explicitly included; however, contract language that provides for a time extension in the event of delays caused by an act of God, act of government or other events beyond the reasonable control of the contractor. A practice encouraged for contracts currently undergoing negotiation is the inclusion of specific references to force majeure with respect to COVID-19, pandemic and disease specific to time extensions.
While the force majeure clause offers protection to contractors it also protects material suppliers in that contractors may be subjected to price increases or may limit the contractor’s ability to terminate the contract and seek alternative suppliers.
As a result of these challenges it is more important than ever for construction companies to be proactively communicating with project owners and project partners regarding these risks and how they will be handled through the course of a contract’s performance period.
As containment measures continue to intensify across the country, having a variety of communication channels available – teleconference and video conference as an alternative to face-to-face, for instance – as well as a high frequency of communication will be critical for ongoing projects to complete in a timely and cost effective fashion. Social distancing and other sanitary measures will also be key for job sites looking to avoid quarantine delays.
Back To Top
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 03/21/2020
COVID-19: How Coronavirus is Impacting the Construction Industry
COVID-19 (officially SARS-CoV-2 or also referred to as novel Coronavirus) is everyday business and life as we know it. The United States Treasury Department announced that it would be pushing back the April 15 deadline to file tax returns and pay taxes owed on that date by 90 days, giving Americans three extra months to pay their 2019 income tax bills. This gives millions of individuals and C-Corporation businesses extra time needed to pay these out-of-pocket costs in light of COVID-19.
03/19/2020
COVID-19: President Signs into Law Coronavirus Relief Act
On March 18, 2020, President Trump signed into law the Families First Coronavirus Relief Act. In addition to providing free COVID-19 testing, access to meals for children required to stay home from school and extended unemployment insurance, the bill includes benefits for employees and employers impacted by the pandemic.
03/19/2020
COVID-19: Questions Related to Notice 2020-17
As the April 15 tax deadline fast approaches, the nation continues to struggle with the Coronavirus pandemic. Earlier this week, Treasury Secretary Steven Mnuchin promised relief for taxpayers, and on March 18th, the IRS formalized that relief by publishing Notice 2020-17
03/18/2020
COVID-19: COVID-19 and Your Business
The global impact of COVID-19 is forcing many business owners to make key decisions everyday on how they will be able to sustain this pandemic and maintain their operations throughout the coming weeks and months.
03/17/2020
COVID-19: Treasury Department Delays April 15 Tax Payment Deadline
The United States Treasury Department announced today, March 17, that it would be pushing back the April 15 deadline to pay taxes owed by 90 days, giving Americans three extra months to pay their 2019 income tax bills.
03/16/2020
Statement from John Herber, Chairman of RubinBrown, Regarding the COVID-19 Pandemic
During these unprecedented times, RubinBrown, like each of you, is navigating the situation on a day-to-day basis. I am grateful that none of our team members or their family members have been diagnosed with the virus at this time. I sincerely hope and
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 wish the same for each of you.
03/13/2020
COVID-19: Department of Education COVID-19 Updates
The Department of Education has created a Coronavirus webpage, which will be updated frequently and can be found here.
03/13/2020
COVID-19: Market Update
Capital markets have reacted sharply to the escalation of Coronavirus since mid-February. Both equity prices and bond yields have experienced historic volatility and fallen sharply in a short period.
03/06/2020
Roads, Bridges and Infrastructure: The Next Wave of Construction Projects
Over the past several years, commercial and residential construction has been booming. What could be next? According to the American Society of Civil Engineers (ASCE), it is estimated that the United States needs to spend nearly $4.5 trillion by 2025 to fix the country’s roads, bridges and other infrastructure. As recent as 2017, the ASCE gave the United States infrastructure a grade of a D+, which is the same grade it received in 2013. Additionally, a National Academy’s committee recently observed that many interstate highways are operating well beyond their design life, handling larger traffic volumes than anticipated and poorly positioned to accommodate even modest traffic growth.
While most Americans need to deal with the issues that come along with an aging infrastructure on a daily basis, other organizations will be posed to reap the benefits. Heavy highway, road and bridge, and specialty contractors that focus on infrastructure may lead the next wave of construction. Further, federal and state capital spending may be on the rise, which can be beneficial to contractors involved in federal and state construction projects.
Recently, the President has brought forward legislation to Congress that generates at least $1 trillion in infrastructure investment. Specifically, the 2020 budget is targeting the following infrastructure needs:
Approximately $2 billion for the Infrastructure For Rebuilding America (INFRA) grant program which focuses on large projects that relieve congestion and mitigate bottlenecks for interstates, freight rail and ports
Approximately, $1 billion for the Better Utilizing Investment to Leverage Development (BUILD) grant program. This program awards important surface transportation projects in urban and rural area.
Approximately $300 million for a competitive highway bridge program which incentivizes states to rehab or replace rural bridges in poor conditions.
Approximately $300 million for two water infrastructure investments which will facilitate more local control over authorized Army Corps of Engineers projects and promote financing partnerships with non-federal partners.
If this 2020 budget comes to fruition, significant opportunity will be available to contractors involved in the infrastructure space!
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134
Back To Top
03/02/2020
FASB Adds SAB Topic On The Accounting For Loan Losses To The Codification
The FASB has issued ASU 2020-02, Financial Instruments—Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842).
03/02/2020
FASB Clarifies The Interaction Between The Accounting For Equity Securities, Equity Method Investments, And Certain Derivative Instruments
The FASB has issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 to clarify the application of the measurement alternative to measure certain equity securities without a readily determinable fair value at cost, minus impairment plus or minus any observable price changes amended in ASU 2016-01.
03/02/2020
FASB Proposes Amendments To Increase Transparency For Gifts-in-Kind To Not-For-Profit Entities
The FASB has issued an Exposure Draft, Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets. The proposed ASU is intended to increase the transparency of contributed nonfinancial assets through enhancements to presentation and disclosure.
03/02/2020
GASB Publishes New Statement No. 92: Omnibus 2020
The GASB has issued an Omnibus Statement No. 92 to address various accounting and financial reporting issues that have been identified during the implementation and application of several GASB pronouncements. The GASB issues omnibus statements to correct, clarify and provide additional guidance on previously issued pronouncements.
03/02/2020
RubinBrown Welcomes Dawn Landmann as Partner
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently welcomed Dawn Landmann as Partner
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 in the Tax Services Group in the St. Louis office.
02/11/2020
Update on Home Builders - News from Las Vegas
RubinBrown leaders recently attended the International Builders Show in Las Vegas. Attendance this year exceeded 70,000 with much optimism being displayed by many in the industry. The following are some highlights:
Economic Outlook
Housing starts hit a 12 year high in December 2019. The HMI (Home Market Index) which measures how builders feel about sales and buyer traffic remains strong at 75. 2019 starts were up 2% from 2018 activity. 2020 and 2021 are predicted to be up 3% and 1% respectively.
Learn more.
Back To Top
02/03/2020
RubinBrown Welcomes Michael Shapow as Partner
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently welcomed Michael Shapow as Partner- in-Charge of the Business Advisory Services Group for the Chicago office.
01/31/2020
FASB Issues Standard To Simplify Accounting For Income Taxes
The FASB issued ASU 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes in attempts to simplify certain aspects of accounting for income taxes.
01/28/2020
Focus on Construction: Update on Home Builders - News from Las Vegas
RubinBrown leaders recently attended the International Builders Show in Las Vegas. Attendance this year exceeded 70,000 with
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 much optimism being displayed by many in the industry.
01/20/2020
Potential Tax Implications of ASC Topic 606: Revenue From Contracts With Customers
New revenue recognition standards under FASB Accounting Standards Codification (ASC) Topic 606 require companies to adopt new methods to recognize revenue from contracts with customers for book purposes.
The standards require a five-step analysis to be completed for all contracts to transfer goods and services. While many companies have started to complete this analysis for book purposes, few are aware of the potential tax implications.
Many of the changes required for book reporting purposes are either not acceptable accounting methods under the Internal Revenue Code and other guidance issued by the IRS, or will require new adjustments for tax reporting. Of the five-step analysis, tax adjustments will most likely occur due to changes in step 2: identifying performance obligations, step 4: allocating transaction price to performance obligations, and step 5: considering performance obligations satisfied. These changes may create additional tax adjustments and possibly tax accounting method changes requiring companies to file a Form 3115 with the IRS.
Changes in financial reporting for certain items including determining the transaction price, uninstalled materials, variable consideration, etc., have the potential to create differences in book and tax income. If it is determined during your internal contract review that any of these items are present or if you have any other questions about the tax implications of ASC Topic 606 please contact your RubinBrown advisor.
01/13/2020
Focus on Employee Benefits: What You Need to Know about the Setting Every Community Up for Retirement Enhancement (SECURE) Act
The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 was signed into legislation by the President on December 20, 2019 and is one of the most significant pieces of retirement legislation since the Pension Protection Act of 2006.
01/09/2020
RubinBrown Partner, Jeff Sackman, Honored with 40 Under 40 Award
Jeff Sackman, CPA, CM&AA, CGMA, Partner and Vice Chair of RubinBrown’s Private Equity Services Group, was recently named to the St. Louis Business Journal’s 40 Under 40, 2020 class.
01/08/2020
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Manufacturing & Distribution: Certain Entertainment Expenses May be Fully Deductible
The Tax Cuts and Jobs Act modified the rules relating to the deductibility of entertainment expenses. In general, entertainment expenses are not deductible under 274(a).
01/08/2020
Focus on Taxation: Certain Entertainment Expenses May be Fully Deductible
The Tax Cuts and Jobs Act modified the rules relating to the deductibility of entertainment expenses. In general, entertainment expenses are not deductible under 274(a).
01/02/2020
FASB Issues Narrow-Scope Improvements to Credit Losses Standard
The FASB has issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses. The FASB previously issued ASU 2016-13, which created Topic 326 regarding the reporting of credit losses on financial assets.
01/02/2020
FASB Issues Proposed Accounting Standards Update – Codification Improvements
As a part of the FASB’s standing project to address suggestions received from stakeholders and to make other incremental improvements to GAAP, the FASB has issued an Exposure Draft, Codification Improvements, that includes technical corrections, clarifications to guidance, simplifications to wording, and other minor improvements.
01/02/2020
GASB Proposes Implementation Guidance For New Pronouncements
The GASB issued an Exposure Draft that contains implementation guidance containing questions and answers intended to clarify, explain, or elaborate on various standards including the financial reporting entity, fiduciary activities, leases, external investment pools, asset retirement obligations, and conduit debt obligations.
12/27/2019
Focus on Not-For-Profits: Public Law 116-94 Repeals the “Parking Tax” and Includes a Change for Private Foundations
Public Law 116-94, the Further Consolidated Appropriations Act (the Act), was signed by the President on December 20, 2019. Among the many provisions of this Act were two that have a direct impact on not-for-profit organizations.
12/19/2019
Focus on Taxation: Extension of Certain Expiring Provisions
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 On December 17, 2019, the House of Representatives passed the Taxpayer Certainty and Disaster Tax Relief Act of 2019 (H.R. 1865), with the expectation that the bill will quickly be passed in the Senate and signed into law by the President. As part of the legislation, Congress agreed to reinstate several popular tax breaks that expired at the end of 2017, in most cases through the end of 2020.
12/18/2019
Focus on Not-For-Profits: Holiday Cheer (Potentially) Related to the “Parking Tax”
Yesterday the House of Representatives passed HR 1865, Taxpayer Certainty and Disaster Tax Relief Act of 2019 (the Act).
12/17/2019
Opportunity Zones and the Deferred Recognition of Capital Gains
Over the past two years, Opportunity Zones have generated a lot of buzz due to the ability to defer recognition of capital gains.
As a reminder, the recognition of capital gains from the sale of any property can be deferred if invested within 180 days of the transaction. The gains invested into an opportunity fund are deferred until the investment is sold or December 31, 2026, whichever is earlier. If the investment is held for five years, the original, invested gain is reduced by 10% and if it is held for seven years, the invested gain is reduced by an additional 5%.
In the first round of proposed regulations, the IRS clarified that the gains that could be invested into an opportunity fund include any gain treated as capital gain for federal income tax purposes, short-term capital gain, long-term capital gain, section 1231 gains and unrecaptured 1250 gains. A problem arises in that section 1231 gains and losses must be netted together to determine the tax treatment. Net section 1231 gains are treated as capital, while net section 1231 losses are treated as ordinary. If a potential investor has section 1231 gains and losses throughout the year, they must wait until at least the last day of the year to complete the netting process. Once this is complete, there is a 180 day window for these gains to be invested into an opportunity fund.
As it happens, December 31, 2019 has become a very important date for those looking to invest gains into an opportunity fund. In order to receive the maximum, 15% reduction in gain through an opportunity fund investment, the cash from the gain must be transferred no later than the last day of 2019. Investments made after this date will not be able to meet the seven year holding period requirement. December 31, 2019 also happens to be the first day that potential investors can calculate their net section 1231 gain and when the 180 day investment window begins.
Also in anticipation of the end of the year, the industry has been eagerly awaiting final regulations from the IRS. Many were hoping they would be issued by December 31, 2019, which is still possible. If not issued by the end of the year, it appears that they will be available in early 2020. The Treasury Department has submitted their version of the final regulations to the Office of Information and Regulatory Affairs, which is the last step before finalization of the regulations. The regulations will combine and update temporary regulations issued in October 2018 and April 2019.
If you need any help understanding the requirements to invest in a qualified opportunity fund, reach out to your RubinBrown advisor.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134
Back To Top
12/05/2019
Incentives for Project Managers in Construction
Positive cash flow and operating efficiencies are directly related to the skills and motivation of project managers. In order to entice project managers to work toward the best possible outcome on every construction job, you might consider developing an incentive program to reward those with the best monthly positive cash flow by job. Positive cash flow could allow the company to fund expenses with customer funds, rather than paying out of its own pocket. Analyzing this on a monthly basis can quickly highlight project managers that are managing their jobs well and those that may need some improvement. Additionally, the company can see which contracts may have issues going forward, whether it be related to billing, performance, efficiencies, etc.
While there may be a very simple explanation for poor cash flow on a job, the exercise of monitoring this may identify issues to be escalated above the project manager level. This could allow the company to take more of a proactive approach to job results as opposed to a reactive approach at project completion. Depending on the size of the company, this can be tracked company-wide, regionally or even down to specific contract types.
In the end, providing an incentive gets the whole team working toward a common goal and can even allow for some friendly competition within the company.
Back To Top
12/04/2019
Missouri Housing Development Commission LIHTC Awards Announcement Postponed
The Missouri Housing Development Commission (MHDC) met on December 2 and voted unanimously with 9 votes on a motion to postpone voting on the annual credit awards until the week of December 9. At this meeting, the commission is slated to vote on the federal low-income housing tax credit awards for Missouri.
Developers in Missouri are anxious to hear the results of the vote and many were surprised with the delay. Also, many traveled from across the state to hear the meeting which lasted only a few minutes.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 We’ll share the results of this meeting once it is complete.
Back To Top
12/02/2019
FASB Issues Change In Effective Date Philosophy And Delay In Effective Dates Of Four ASUs For Certain Entities
The FASB recently approved delays of the effective dates for several of its recent standards that provide at least an additional year to companies that have not yet adopted the standards in ASU 2019-09, Financial Services – Insurance (Topic 944): Effective Date and ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates. The deferral of implementation is a result of outreach with stakeholders and monitoring of implementation.
12/02/2019
FASB Issues Improvements to the Accounting for Collaborative Arrangements
The FASB issued ASU 2019-08, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements—Share-Based Consideration Payable to a Customer.
12/02/2019
FASB Proposes Clarifications to Certain Areas of the Derivatives and Hedging Standard
The FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which makes targeted improvements to the hedge accounting model in order to improve financial reporting of hedging relationships and simplify the application of hedge accounting guidance.
11/22/2019
RubinBrown Releases 2019 Public Sector Municipal Statistical Analysis
Denver, Kansas City and St. Louis Municipalities Continue to Operate at a Healthy Surplus on a Government-wide Basis
11/11/2019
Housing Colorado Now Conference Recap
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 On October 9-11, the annual Housing Colorado Now conference took place in Keystone, Colorado. Many prominent professionals in the affordable housing space gave presentations on issues affecting the industry.
RubinBrown Partner, Amy Broadwater, sat on a panel around current legislation updates in Washington. The panelists discussed several issues in the capitol affecting affordable housing from the government shutdown, to legislation such as AHCIA, and the quality of the affordable housing platforms of presidential candidates.
The legislation discussed could have profound positive effects for the affordable housing industry. Key provisions include the establishment of a minimum 4% floor for low-income housing tax credits generated by tax-exempt bonds issued for multifamily housing. This could lead to an increase in an additional 1,200 affordable homes in Colorado and 65,000 homes nationwide in the coming decade.
Additionally, the AHCIA could expand the practice of bond recycling. The bill would give states 12 months (doubling the current rule of six months) to recycle multifamily bond proceeds. The legislation would also make these bonds eligible for 4% housing credits. The panel projected that this would result in the construction of an additional 100,000 affordable houses in the next ten years.
The progress of the legislation in Congress is optimistic with bi-partisan support in both the House and Senate. However, there was also concern about the Announced Notice of Proposed Rulemaking released by the Office of the Comptroller of Currency in August of 2018 in regards to the Community Reinvestment Act (CRA). The CRA drives as much as 85% of LIHTC equity investment. Because of this, the affordable housing industry is very sensitive to changes in the rules and LIHTC stakeholders should follow this process closely. The panel projected that new regulations could come into law in late 2020 or early 2021.
If you need any help understanding current or proposed legislation related to affordable housing, reach out to your RubinBrown advisor.
Back To Top
11/04/2019
Focus on Construction: Update on Home Builders - News from New Orleans
RubinBrown recently attended the Fall Leadership meeting of the National Association of Home Builders in New Orleans.
11/01/2019
GASB Proposes Guidance on Replacement of IBOR Rates with Other Reference Rates
The GASB has issued an Exposure Draft entitled Replacement of Interbank Offered Rates. Many governments have entered into agreements (particularly derivative instruments and lease agreements) in which variable payments made or received depend on an interbank offered rate (IBOR)—most notably, the London Interbank Offered Rate (LIBOR).
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 10/28/2019
RubinBrown Names Ben Barnes as Denver Managing Partner
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, has named Ben Barnes, CPA, CGMA as Managing Partner of the Denver office.
10/25/2019
RubinBrown Relocates Chicago Office Downtown
RubinBrown, one of the nation’s Top 50 accounting and business consulting firms, announces it will relocate its Chicago office to the downtown area on October 28, 2019.
10/21/2019
Quarry Accounting – What Are The Main Differences?
Did you know, quarries have a special set of considerations to be applied in order to determine appropriate accounting for the industry?
Phases of the Industry
One of the special considerations relates to the stage of the operations:
1) Exploration – search for resources suitable for commercial exploitation (discovery costs)
2) Evaluation – determining the technical feasibility and commercial viability of the resource (proving costs)
3) Development – establishing access to the reserves and preparations for commercial production
4) Construction – establishing and commissioning facilities to extract, treat and transport production from the reserve
5) Production – day to day activities of obtaining a saleable product from the reserve on a commercial scale
6) Closure and rehabilitation – ceasing operations and restoration of the site
The accounting for each of these phases is nuanced and should be discussed with your accounting advisors in detail. In particular, during the development phase, costs are generally capitalized until the point in which production begins. Capitalized development costs are amortized using the units-of-production method as the resources are mined. Reserves during the development phase should be estimated to determine the proven and probable amount of reserves available.
The cutoff of the development and construction phases, in which costs are generally capitalized, and the point of production are critical points that should be established by the entity. During the production phase, costs are charged as operating expenses, rather than capitalized.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Inventory Accounting – Production Phase
During the production phase, inventory should be measured and valued at all costs of the purchase, costs of conversion and other costs to bring inventory to present location and condition. Generally Accepted Accounting Principles require inventory be held at the lower of cost or net realizable value. Costs of conversion include indirect labor, indirect materials, depreciation of the processing plant and equipment used, and all other costs of running the site including electricity, power, utilities and any other costs to run production. Other costs associated with inventory could include depreciation and amortization, ongoing or short-term development costs, royalties (if based on production) and freight costs.
Administrative overheads not associated with the site, storage costs (unless necessary in production process), selling costs and abnormal amounts of wasted materials, labor and production should be excluded from inventory costs.
Stripping is the removal of overburden or waste to access mineralized materials. Once production has commenced, stripping costs incurred in surface mining are accounted for as a cost of current production. Therefore, these are a component of the cost of inventory extracted from the site and held at period end.
Work in progress inventory should be measured when a reliable assessment of mineral content is possible and cost of production can be reliably determined. Stockpile inventory is based on physical measurements with grade determined through testing.
Environmental Obligations
Entities are required to recognize a liability for obligations associated with environmental remediation liabilities related to pollution arising from some past acts under ASC 410-30. An accrual is required if information is available before the financial statements are issued that indicates it is probable that a liability has been incurred as of the financial statement date and the amount of the loss can be reasonably estimated.
The estimate should consider the extent and type of hazardous substances, choice of technology, changing laws and regulations, number of potential responsible parties, and the financial conditions of the other parties. Additionally, companies should consider the cost of compensation and benefits for employees handling remediation, cost of feasibility studies, fees to engineers, consultants and contractors, governmental oversight costs, and costs of machinery.
This differs slightly from asset retirement obligations, which should be recognized in the period incurred when the entity has an existing legal obligation associated with the retirement of a tangible asset and the amount can be reasonably estimated. The present value of the obligation should be calculated and accrued as a liability then released with the passage of time and changes in estimates.
When in doubt about any accounting topics in a specialized industry, consult your advisors!
Back To Top
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134
10/15/2019
Succession Planning 101
Succession planning, like estate planning, is a very important yet often overlooked or delayed topic of discussion.
No business owner or executive wants to talk about this topic. To talk about your successor means you have to relinquish control, plan for a sale of a business that you have overseen and inherently trust another with one of your most valuable assets.
The two primary concerns with succession planning are shifting operational or managerial control and shifting legal control.
Key considerations for operational control:
Obtain commitment and involvement from the Board, executives and family members Involve your professional advisors early and often in the process Train successors for the key executive roles Practice constant improvement and leadership development at all levels of the organization Seek professional help when needed on the emotional, political or people side of the process
Key considerations for legal control:
How does the owner protect and pass on the value that has been developed in the business? Will ownership remain in the family or key executives or both? Plan for income and estate tax ramifications of the transaction Are the documents and plan in place to successfully execute a planned or unplanned transition?
With all successful transactions, proper commitment of time and resources need to be dedicated to the process. Openly involve and communicate to the parties involved including bankers and bonding agents. Create and stick to a timeline with regular check- ins on progress. While separating from what can be your life’s work is a daunting task, there is help. Remember as Benjamin Franklin said, “If you fail to plan, you are planning to fail.”
Read more at Construction Executive.
Back To Top
10/15/2019
RubinBrown Releases 2019 Apartment Statistical Analysis
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 According to RubinBrown’s annual apartment statistical analysis, trends in affordable and multi-family housing remain similar to previous years. Overall, vacancy rates remain historically low, but experienced increase throughout the year.
10/14/2019
RubinBrown’s Megan Knoblauch Named as a Missouri Society of CPA’s Women to Watch Award Recipient
Megan Knoblauch, CPA, the Partner-In-Charge of RubinBrown’s Assurance Services Group in Kansas City, was awarded a Women to Watch award by the Missouri Society of CPAs (MOCPA).
10/09/2019
Look Before You Leap Into Opportunity Zones
After a careful review of the national stimulus program, some investors might conclude there are better destinations for their dollars, according to Steve Meyer of JVM Realty Corp. and Maureen Reichert of Rubin Brown's Real Estate Services Group. It seems you can hardly go a day without seeing a headline or two about Opportunity Zones.
Created by the federal Tax Cuts and Jobs Act of 2017 to spur long-term private investment in economically distressed communities, the Opportunity Zone program has been the subject of a tremendous amount of press coverage and investor interest. The program allows investors to reinvest capital gains into the creation or expansion of businesses and into the development or renovation of real estate located in opportunity zones. In return, the investors receive tax deferral and tax reduction benefits.
Read the full article in Multi-Housing News.
Back To Top
10/07/2019
Focus on Taxation: Changes to Section 382 of the Internal Revenue Code
The IRS recently published proposed regulations that would further reduce a corporation’s already-limited ability to utilize its net operating loss (NOL), credits and interest expense carryforwards after an ownership change.
10/02/2019
Focus on Cyber Security: October is Cyber Security Awareness Month
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Own IT. Secure IT. Protect IT. October is the 16th Annual National Cyber Security Awareness Month and a great time to update your security awareness training program – or start one.
10/01/2019
Affordable Housing and the Next Election
The democratic debate on September 12th focused on a field of presidential hopefuls that is now narrowed down. Many groups and individuals across the United States with an interest in affordable housing watched the debate in hopes of a mention of the candidates’ stances on the topic.
Unfortunately, as with the other two televised debates, there were no questions and no discussion raised related to the current affordable housing crisis. According to the National Low Income Housing Coalition’s “The Gap: A Shortage of Affordable Homes 2019”, “no state has an adequate supply of affordable rental housing for the lowest income renters.” The middle class has also begun to feel the squeeze of housing affordability. Housing affordability will be a major issue that the current and/or next president will need to address now and in the coming years.
Even though the topic was not discussed in the recent debates, some of the democratic candidates have ideas (and even proposed bills) about potential solutions.
Cory Booker’s plan involves a renter’s credit to anyone paying over 30% of their before-tax income, a “Baby Bonds” savings account for every child, amends zoning laws and provides funding to the Housing Trust Fund to build more new rental units nationwide.
Julian Castro, who was the Secretary of Housing and Urban Development during the Obama administration, has detailed a comprehensive plan including more funding to the Housing Trust Fund, expanding the housing voucher program, establishing a renter’s tax credit and zoning reform.
Kamala Harris plans to address redlining, which involves the systematic denial of mortgage loans to certain “undesirable” communities, by offering down payment and closing cost assistance to residents of redlined areas. She also intends to fight discrimination in lending and public housing arenas, as well as provide potential homeowners with more education about home buying.
Elizabeth Warren has already introduced American Housing and Economic Mobility Act into the Senate and successfully encouraged representatives into sponsoring identical legislation in the House. Her bill proposes investing more funds in affordable housing programs, amending zoning laws, and lowering the cap on estate tax, amongst other things.
The proposals above are in addition to the Low Income Housing Tax Credit (LIHTC) program, which has enjoyed bipartisan support since its inception in 1986. The program has incentivized private companies and individuals to make investments in affordable housing developments, rather than rely on the government to provide public housing. According to the National Housing Law Project, there are currently over two million affordable tax credit units online in the United States today, with tens of thousands more placed in service annually. Although the LIHTC program has proven successful thus far, it only addresses part of the worsening affordable housing crisis.
RubinBrown’s real estate team can help advise on any questions related to affordable housing and the current landscape.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134
Back To Top
10/01/2019
FASB Proposes Effective Date Delay for All Insurance Companies Applying Standard on Long-Duration Contracts
The FASB has proposed an effective date delay, which would grant all insurance companies that issue long-duration contracts such as life insurance and annuities additional time to apply ASU No. 2018-12, Financial Services- Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts.
10/01/2019
FASB Proposes Guidance to Assist in Transition Away from Interbank Offered Rates
The FASB issued a proposed ASU that is intended to ease the potential accounting burden as it relates to reference rate reform. In light of the risk of the cessation of the London Interbank Offered Rate (LIBOR) and global regulatory efforts toward reference rate reform, the FASB has proposed a number of optional expedients and exceptions for contracts, hedging relationships and other transactions that are likely to be impacted by reference rate reform.
10/01/2019
FASB Proposes Guidance to Simplify Classification of Debt in a Classified Balance Sheet
As a part of the FASB’s Simplification Initiative, the FASB has released a revised proposed ASU that seeks to simplify the classification of debt between current and non-current debt by making this determination more principles based.
10/01/2019
GASB Issues Implementation Guide on Leases
The GASB issued Statement No. 87, Leases in June 2017 to amend the guidance regarding the accounting and reporting related to leases. As is customary for new standards, the GASB provides implementation guidance via the standard and implementation guides.
10/01/2019
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 RubinBrown’s Brandon Loeschner Named as Emerging Leader of Gaming
Brandon Loeschner, CPA, CISA, CGMA, a national practice leader of RubinBrown’s Gaming Services Group, was recently named to Global Gaming Business Magazine’s list of Emerging Leaders of Gaming, 40 Under 40 class.
09/25/2019
Illinois Enacts New Retainage Law
A new law (815 ILCS 603/20) recently signed in Illinois limits the amount of retainage withheld on a construction contract to 10% (5% after the contract is 50% complete).
With this law, Illinois becomes one of 20 states with similar regulations related to retainage in construction. This law is effective for all contracts signed after 08/20/19 and applies to all construction contracts and subcontracts for the “design, construction, alteration, improvement or repair” of real property.
This cap applies equally to owner-contractor agreements and to contractor-subcontractor agreements, as well as to owner- architect and design agreements. Also, because the terms “contractor” and “subcontractor” have the same broad meanings as in the Illinois Mechanics Lien Act, the limit applies to construction managers, design-builders, sub-subcontractors and material suppliers too.
This new law likely helps contractors obtain a larger payout earlier in the contract timeframe. The 10% - and subsequent 5% - cap on retainage should result in an infusion of funds to contractors, who have long argued that withholding 10% of payments until the end of a project negatively impacts cash flow. Because this law doesn’t apply to construction loans or the amount of retainage lenders may withhold from construction draws, project owners need to consider the impacts of this law on their cash flows.
For contractors using tax-favorable strategies related to retainages, the specific impact of this law should be considered during year-end planning.
Back To Top
09/25/2019
Three RubinBrown Partners Honored on Inaugural 2019 Who’s Who in Accounting List Presented by the Denver Business Journal
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Matt Beerbower, CPA, Rhonda Sparlin, CPA and Debbi Warden, CPA, CGMA, MBA, have all been named to the Denver Business Journal’s 2019 Who’s Who in Accounting list. The list recognizes innovators and trailblazers whose expertise and leadership help drive the economic growth of the region.
09/24/2019
General Contractor Cost Considerations
Payments to subcontractors typically makes up 65% to 85% of a general contractor’s (GC) total expense. While this percentage will fluctuate depending on the amount of work the GC self performs, it will always be a significant cost.
It is vital to allocate special attention and design specific controls to manage subcontractor expense. Four important controls to have in place are as follows:
1. Pre-qualify your subcontractor’s financial stability and credit worthiness before they start any work.
Obtain their latest audited or reviewed financial statements Ask for references and follow through with phone calls Request a certificate of insurance Request a surety capacity rating Request a credit report
2. If working with sub-contracts in excess of $250,000 or with unfamiliar subcontractors, the GC should give serious consideration to a surety bond requirement. A good subcontractor should have no problem furnishing a surety bond.
Examine the bond to ensure it is authentic Complete some due diligence to ensure the bonding agent is reputable
3. Design and implement an internal competitive bid policy for selecting a subcontractor. We recommend that this policy stipulate that at least three bids or quotes be obtained for each line of work where a subcontractor is needed. If the low bidder is not awarded the job or if three bids were not obtained, the reason should be documented in the job file and reviewed by management.
4. Obtain a list of the subcontractor’s major material suppliers and request lien waivers. The GC should verify that the subcontractor is paying its vendors on a monthly basis while the job is in progress.
In summary, managing a GC’s most significant expense can have a direct impact on profitability. By implementing tight controls, a GC may be able to “move the needle” on profitability in a competitive market.
09/20/2019
Focus on State and Local Taxation: Illinois Tax Amnesty Program
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 On June 5, 2019, Illinois Governor J.B. Pritzker signed legislation enacting a tax amnesty program scheduled to run from October 1, 2019 through November 15, 2019.
09/16/2019
Focus on Transportation & Dealerships: Business Interest Limitations and the Transportation Industry
For companies with average revenues over $25 million in the three previous years, the Tax Cuts and Jobs Act (TCJA) had a major impact on the deductibility of business interest expense. Prior to 2018, businesses were allowed to deduct 100% of all interest expense that was incurred.
09/03/2019
FASB Proposes Change In Effective Date Philosophy And Delay In Effective Dates Of Three ASUs For Certain Entities
The FASB recently issued proposed delays of the effective dates for several of its recent standards that would provide at least an additional year to companies that have not yet adopted the standards.
09/03/2019
FASB Proposes Clarification To The Interaction Between The Recognition And Measurement Of Financial Instruments And The Accounting For Equity Method Investments
The FASB recently issued a proposed ASU, Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The proposed ASU is intended to clarify the accounting for equity securities in instances where there are observable transactions that may require the application or discontinuation of the equity method of accounting.
09/03/2019
FASB Proposes Improvements Related To Distinguishing Liabilities From Equity
The FASB has issued an exposure draft related to Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.
09/03/2019
FASB Updates Various Codification SEC Sections
The FASB issued Accounting Standards Update (ASU) No. 2019-07, Codification Updates to SEC Sections, Amendments to SEC Paragraphs Pursuant to SEC Final Rule Release No. 33-10532, Disclosure Update and Simplification, and Nos. 33- 10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates.
09/03/2019
GASB Issues Omnibus Statement Exposure Draft
The GASB has issued an exposure draft of an omnibus statement to address various accounting and financial reporting issues
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 that have been identified during the implementation and application of several GASB pronouncements.
08/23/2019
HUD Awards $28 Million to Clean Up Lead Hazards in Public Housing
On August 20th, HUD announced awards of $27.8 million to 38 various housing agencies in 25 states to assist with lead-based paint hazards in older public housing units.
In addition to these awards, HUD plans to grant another $330 million later this year to clean up lead-based paint and safety concerns for privately-held affordable housing. To learn more, click here.
Back To Top
08/16/2019
Focus on Gaming: One Year Since the Overruled Professional and Amateur Sports Protection Act
It has been a little over a year since the Supreme Court overruled the Professional and Amateur Sports Protection Act (PASPA) in May 2018, permitting states across the U.S. to pass regulations that will allow them to offer sports betting.
08/13/2019
The Outlook for Low-Income Housing Remains Positive
According to the Dodge Data & Analytics Supply Track data, approximately 394,000 multi-family apartment units were completed in 2017, another 381,000 units in 2018 and 453,000 units are expected in 2019.
Despite the growth in number of multi-family units, the nation’s supply of low-cost rental housing significantly shrank after the Great Recession and has remained for the most part unchanged since 2015. A National Low Income Housing Coalition study found that for every 100 extremely low-income renters, only 35 rental units were affordable and available in 2016, which is a shortfall of more than 7.2 million units. According to the Joint Center for Housing Studies of Harvard University, more than 2.5 million units priced below $800 were lost between 1990 and 2016. Additionally, job growth is expected to be at 1.0% in 2019, which would produce 1.5 million new jobs according to Fannie Mae’s forecast. According to the Fannie Mae 2019 Multi-family Market Outlook, based on that job growth, multi-family rental demand theoretically could increase in the range of between 250,000 units to as high as 370,000 units. Further straining the nation’s supply of low-cost rental housing.
As a result of demand, vacancy rates remain at historically low levels. Additionally, the low-income vacancy rates remain lower at
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 government-assisted projects than at market rate projects. This has been a consistent trend as the need for low-income housing far surpasses the supply. Unsubsidized low-income housing units are under constant threat of being lost to upgrading or removal, while subsidized contracts are at risk of converting to market rate units. Affordability restrictions on 533,000 LIHTC units, 425,000 project-based section 8 units and 142,000 other subsidized units are set to expire within the next 10 years. As a result of both tenant and industry demand, the outlook for additional low-income housing remains positive.
Back To Top
08/01/2019
FASB Proposes Narrow-Scope Improvements To Credit Losses Standard
The FASB recently issued proposed improvements, Codification Improvements to Topic 326, Financial Instruments – Credit Losses. The proposed improvements are intended to clarify the appropriate application of the recently issued ASU 2016-13 regarding credit losses.
08/01/2019
GASB Issues Implementation Guide On Fiduciary Activities
The GASB previously issued GASB No. 84 Fiduciary Activities regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported.
08/01/2019
GASB Proposes Guidance On Deferred Compensation Plans
The GASB has issued an Exposure Draft, Internal Revenue Code Section 457 Deferred Compensation Plans That Meet the Definition of a Pension Plan and Supersession of GASB Statement 32.
08/01/2019
GASB Proposes Statement On Public-Private And Public-Public Partnerships
The GASB has issued an Exposure Draft on Public-Private and Public-Public Partnerships and Availability Payment Arrangements.
08/01/2019
RubinBrown’s Stephanie Drew Honored with Colorado Society of CPAs Women to Watch Award
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Stephanie Drew, CPA, MST, CFE, a partner in RubinBrown’s Business Advisory Services Group, was recently named as a 2019 Woman to Watch award recipient by the Colorado Society of CPAs.
07/30/2019
Focus on Public Sector: GASB 84 Update
On Thursday June 19th, the Governmental Accounting Standards Board (GASB) issued its Implementation Guide on Fiduciary Activities (guide).
07/24/2019
Focus on Public Sector: 2019 OMB Compliance Supplement Update
Applies to Public Sector, Not-For-Profit, Colleges and Universities
07/23/2019
Women in Construction? Yes, There are Women in Construction.
Even with a lot of focus recently on diversity in the workplace, construction is still a male-dominated industry. According to recent surveys, women make up less than 10 percent of the construction workforce.
There is a higher percentage of women serving in Congress (currently 23.7 percent) and in the active duty military (14 percent). Women do in fact make up 47 percent of the total civilian workforce. So, as the construction industry looks for ways to hire and develop skilled labor, diversity has become more important than ever.
There are several challenges to increasing diversity, specifically among women in construction that need to be addressed. These include unwelcome worksites, sexual harassment issues, flexibility and the perception by others that women on the team are not as capable for projects that require manual labor. It’s not the women, it’s the environment and the culture.
So what can a construction company do to address these challenges? First, educate both the men and women in the company about diversity and company expectations regarding a safe work environment. Also, provide opportunities for networking and training. Finally, review your compensation structure to make sure that your company enforces a policy of equal pay for equal talent.
There are several resources available to help increase diversity at your company and support the women there already. The National Association of Women in Construction (NAWIC), Professional Women in Construction (PWC), as well as other local organizations have tools, education materials, conferences and other resources available.
Construction companies, as well as other organizations, are finding diversity is the key to success. Now is a good time to start the conversation or you may be left behind.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Back To Top
07/22/2019
Facebook and the Fair Housing Act
The U.S. Department of Housing and Urban Development (HUD) announced in March 2019 that it is charging Facebook with violating the Fair Housing Act by enabling housing discrimination through its advertising platform.
HUD alleges that Facebook unlawfully discriminates based on race, color, national origin, religion, familial status, sex and disability by restricting who can view housing-related ads on Facebook’s platforms and across the internet. Further, HUD claims Facebook mines extensive data about its users and then uses this data to determine which of its users view housing-related ads based, in part, on these protected characteristics.
The Fair Housing Act prohibits discrimination in housing and in housing-related services, including online advertisements, based on race, color, national origin, religion, sex, disability or familial status.
A United States Administrative Law Judge will hear HUD’s charge unless any party to the charge elects to have the case heard in federal district court. If a judge finds that discrimination has occurred, he may award damages for harm caused by the discrimination. The judge may also order injunctive relief and other equitable relief, as well as payment of attorney fees. In addition, the judge may impose fines to vindicate the public interest. If the matter is decided in federal court, the judge may also award punitive damages.
At RubinBrown, we specialize in the complex and highly regulated affordable housing industry. We perform audits of Low-Income Housing Tax Credit (LIHTC) partnerships to ensure they comply with HUD regulations. In addition, we can help you navigate the complexities of these types of regulations and laws to protect your reputation.
Back To Top
07/19/2019
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on State & Local Taxation: Missouri Extends Statute of Limitations on Sales and Use Tax Refunds
On July 11, 2019, Governor Parson signed Senate Bill 87, which extends the statute of limitations for sales and use tax refunds.
07/18/2019
Focus on Assurance: FASB Votes To Propose Delay In Effective Dates Of Four ASUs For Certain Entities
The FASB has voted to propose a deferral of the effective dates for several of its recent standards that would provide at least an additional year to companies that have not yet adopted the standards.
07/18/2019
Focus on Taxation: Changes to the Nevada Commerce Tax Return Filing Requirements
Thanks to the Nevada Legislature, companies with less than $4 million of Nevada gross revenue have less to do this summer. In the past, all companies conducting business in Nevada were required to file Commerce Tax returns regardless of revenue.
07/17/2019
Housing Credit Connect Recap
RubinBrown Partner, Amy Broadwater, Recaps Key Learnings from the NCSHA Conference
Recently, I had the pleasure of participating on The Impact of Tax Reform on Deal Structuring panel at NCSHA’s Housing Credit Connect. My fellow panelists and I delved into how various components of tax reform have impacted the low-income housing tax credit community. These components included such items as the decrease in the corporate tax rate, changes in depreciation rules and the interest expense limitation.
The components of tax reform that we discussed have had real effects on low-income housing tax credit deals, some positive and some negative. The combination of these changes impact the yield to the investors, which then impacts equity pricing. Investors in low-income housing tax credit deals receive tax benefits from the low-income housing tax credits, but they also receive tax benefits from the taxable losses allocated to them. For example, with the drop in corporate tax rate from 35% to 21%, the tax benefits derived from the losses have less value to investors, and thus decreases the yield to an investor. On the other hand, the increase in the bonus depreciation percentage from 50% to 100% has allowed some deals to deliver losses to investors earlier, which increases the yield to the investor.
Overall, tax reform has led to lower equity pricing for low-income housing tax credit deals. Tax reform also led to more importance being placed upon the upfront financial projections that are prepared prior to the closing on a low-income housing tax credit partnership. Because of the complexities that came from tax reform, there are more issues than ever that need to be addressed prior to closing on a low-income housing tax credit transaction. All of the panelists agreed that it is never too early to get your tax advisor involved in your deal to start sorting through those issues.
Back To Top
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134
07/16/2019
Focus on Taxation: Missouri Will Not Limit Business Interest Expense
As part of the Tax Cuts and Jobs Act, for tax years beginning on or after January 1, 2018, the amount of business interest that is deductible for federal income tax purposes may be limited.
07/08/2019
Changes to Rules on Personal Use of Company Autos May Simplify the Calculation for Construction Businesses
The free use of a company vehicle is a great perk an employee may receive as part of a compensation package. This type of perk is especially valuable in the construction industry as contractors and builders are constantly traveling from job to job.
However, this benefit isn’t completely free under current tax law – the personal use is treated as a taxable noncash fringe benefit, subject to income taxes.
The calculation of the amount to include in taxable income can be a very time-consuming endeavor. The annual lease value (ALV) of each vehicle must be determined, based on IRS tables using the fair market value (FMV) of the vehicle when it was first placed in service and the number years the vehicle has been in service. This value is then multiplied by the percentage of personal miles to total miles driven during the year.
For companies with 20 or more vehicles, the Fleet-Average Method can be used to simplify the taxable income calculation. The average FMV of all of the company owned vehicles is used to calculate the annual lease value of all of the vehicles in the fleet, instead of pulling the ALV for each vehicle individually.
Before the Tax Cuts and Jobs Act (TCJA) most companies could not use the Fleet-Average Method because the average FMV of vehicles in the fleet needed to be less than $21,100 (cars) or $23,300 (trucks and vans) for the company to qualify. To put that in perspective, a 2019 base model F150 currently costs about $29,000 without any kind of extended cab.
The TCJA, however, increased the average FMV limit to $50,000 for cars, trucks and vans in 2018. This limit is indexed for inflation annually. The limit for 2019 is $50,400 – high enough to include a mid-level ½-ton truck with a crew cab. If you aren’t currently using the Fleet-Average Method to calculate the amount of taxable income for personal use of company vehicles, it might be a good time to consider making the change.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Back To Top
07/02/2019
AICPA ENGAGE Conference Recap
On June 11th, Maureen Reichert, Real Estate Tax Partner, presented with Steve Meyer, JVM Realty Corp Chief Investments Officer, at the AICPA ENGAGE Conference in Las Vegas, NV.
The session focused on key differences in investing in general private equity real estate funds vs. qualified opportunity zone funds, which have had much attention since they were created under the Tax Cuts and Job Act of 2017. Namely, it is important that potential investors perform proper due diligence before determining which investment option is best for their needs regardless of the tax benefits involved with each.
Back To Top
07/01/2019
FASB Issues Guidance To Simplify Accounting For Goodwill And Certain Identifiable Intangible Assets For Not-for-Profits
The FASB has issued ASU 2019-06, Extending the Private Company Accounting Alternatives on Goodwill and Certain Identifiable Intangible Assets to Not-for-Profit Entities related to changes to the treatment of goodwill and certain other intangible assets for not-for-profit entities that will allow not-for-profit entities the same accounting alternatives made available to private for- profit companies.
07/01/2019
FASB Issues Targeted Transition Relief For Topic 326, Financial Instruments—Credit Losses
In response to concerns regarding the transition to ASU 2016-13, the FASB’s recently issued ASU 2019-05 will allow entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis.
07/01/2019
GASB Issues Exposure Draft Related To Subscription-Based Information Technology Arrangements
The GASB has issued an Exposure Draft entitled Subscription-Based Information Technology Arrangements. The purpose of
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 the Exposure Draft is to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITA’s).
07/01/2019
GASB Issues Guidance Related To Conduit Debt Obligations
The GASB has issued GASB No. 91 Conduit Debt Obligations to provide a single method of reporting conduit debt obligations by issuers and eliminate the diversity in practice associated with the commitments, arrangements and related disclosures
06/25/2019
Improving Profits, Operations and Liquidity in Construction Projects
Recently, RubinBrown leaders attended the Construction Financial Management Association Annual Conference in Las Vegas. At the conference, some key insights were discussed by experts in the profession around improving profits, operations and liquidity.
When it comes to improving profits, you should always conduct a post job review to better plan for future projects. Also, consider contractor and contract size when evaluating if your company would be a good fit to take on a project. If you come across a cost- plus contract, make sure to evaluate what your actual return will be once all the work is said and done. Automation and integration are also key to improving profits as they should help streamline operations.
In terms of improving your operations function, understand where your bottlenecks exist to better allocate resources effectively and efficiently. When a job is complete, make sure you understand the rationale behind unrecovered costs and investigate ways to incorporate changes in the estimating process for future jobs. Review internal job costing and billing approval processes to ensure costs incurred are billed in a timely manner. And, it goes without saying, but resist the temptation to increase a project size too quickly without evaluating your workload, potential return and the effect on your day to day operations.
Finally, if your goal is to improve liquidity, consider selling your idle fixed assets. Re‐negotiate debt obligations to push out due dates of payments past one year. And, it sounds simple, but gain control of your overhead expenses. Overhead as a percentage of revenue for general contractors is usually in the 2% - 4% range, and overhead for subcontractors should be less than 10% annually.
Back To Top
06/20/2019
Focus on R&E: Welcome News about the R&E Tax Credit for Start-up Companies
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The Research & Experimentation tax credit, also referred to as the “R&E”, “R&D” or “Research” tax credit incentivizes companies to invest in people and technology that can lead to growth in revenues and profitability, as well as to promote job retention and expansion. The credit focuses on three types of expenditures: qualified wages, supply costs and contract research.
06/19/2019
New Rules: State Historic Tax Credit Summit
Our own Bill Gawrych will speak at a panel on June 21 at the State Historic Tax Credit Summit in Missouri.
Take an in-depth look at the changes to the Missouri State Historic Preservation Tax Credit Program. You'll hear more about the current state of affairs on the MO Historic Tax Credit, learn about changes to the cost certification guidelines and hear how the new guidelines will affect future projects.
Back To Top
06/18/2019
Focus on Not-For-Profits: Final Regulations Issued June 13, 2019 Affect Charitable Contribution Deductions and State Tax Credits
On June 13, 2019, final IRS Treasury Regulations were issued that impact and directly relate to several of the provisions enacted in the Tax Cuts and Jobs Act (December 2017).
06/14/2019
Focus on Construction: Update on Home Builders - News from Washington, D.C.
RubinBrown recently attended the mid-year board meeting of the National Association of Home Builders in Washington, D.C.
06/05/2019
The Impact of Tax Reform on Deal Structuring
Our own Amy Broadwater will speak on a panel at the National Council of State Housing Agencies Housing Credit Connect event on June 13.
Hear more about how tax advisors analyze various provisions of the Tax Cuts and Jobs Act and the impact on Housing Credit deal structuring. Get insider perspectives on the reduced corporate tax rate, depreciation change rules, interest deduction limitations and how these topics have affected investor interest.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134
Back To Top
06/03/2019
FASB Issues Narrow-Scope Improvements To Financial Instruments Standard
The FASB has issued ASU 2019-04 – Codification Improvements to Topic 326, Financial Instruments – Credit Losses; Topic 815, Derivatives and Hedging; and Topic 825, Financial Instruments. The ASU was issued to make clarifications and minor corrections to several recently issued financial instruments standards.
06/03/2019
FASB Issues Proposal To Simplify Accounting For Income Taxes
The FASB has issued an Exposure Draft which attempts to simplify certain aspects of accounting for income taxes. The proposal would remove certain exceptions to existing guidance and would also add provisions that would seek to clarify or simplify current guidance.
06/03/2019
GASB Establishes New Guidance To Assist With The Implementation And Application Of Various Pronouncements
The GASB has issued Implementation Guide No. 2019-1, Implementation Guidance Update – 2019. The GASB periodically issues implementation guidance to assist practitioners in implementing GASB Statements and to answer frequently asked questions.
05/31/2019
Focus on Gaming: The Intersection of Online Gaming, Cyber Security, and State Gambling Laws
Cyber security has to be embedded into the compliance fabric of online gambling operators and decision makers. Security is not something bolted on after a new online application is created, it has to be integrated using security by design.
05/30/2019
Spotlight On Income Averaging: Asset Management & Compliance
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Our own Tim Anderson will speak on a panel at the National Housing & Rehabilitation Association on June 3.
Explore the in’s and out’s of the new average income election. An expert panel of developers, investors and housing finance agency representatives will discuss asset management and compliance best practices for projects utilizing the income averaging election as well as business strategies, marketing opportunities and approaches to structuring income averaging.
Back To Top
05/30/2019
Larry Piparo Named Partner in RubinBrown’s Las Vegas Office
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently promoted Larry Piparo, CPA, to Partner in the Tax Services Group in the Las Vegas office, effective June 1, 2019.
05/30/2019
RubinBrown Announces Firm-Wide Leadership Promotions
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently announced several significant leadership promotions.
05/30/2019
RubinBrown Announces Leadership Promotions in Kansas City
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently promoted Megan Knoblauch, CPA, to Partner-In-Charge of Assurance Services in Kansas City and Zach Fritz, CPA, to Partner in the Tax Services Group.
05/30/2019
RubinBrown Announces Partner Promotions in St. Louis Office
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently promoted Mark Breakfield CPA, CGMA, to Partner in the Wealth Advisory Services Group. Christine Figge CPA, CGMA, was named Partner in the Business Advisory Services Group. Tim Kennedy, CPA, and Chris Tkach, CPA, CGMA were named Partners in the Assurance Services Group. Dominic Pisoni, CPA, was named Partner in the Entrepreneurial Services Group.
05/24/2019
Are you Giving the Internal Revenue Service an Interest-Free Loan?
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The Tax Cuts and Jobs Act (TCJA) provided many tax benefits to individual owners of pass-through entities in the construction industry.
One benefit we have discussed in other blogs is the new section 199A qualified business income deduction, which replaced the old section 199 domestic production activities deduction. Section 199A provides qualified taxpayers a 20% deduction of qualified business income on their individual income tax return. The rules surrounding section 199A are complex but many contractors meet the definition of a qualified trade or business and have payroll and tangible property to meet the 50% wage limitation and 2.5% UBIA limitation (unadjusted basis immediately after acquisition of all qualified property) for certain taxpayers.
With this new deduction and many other potential benefits, when was the last time you analyzed your entity’s tax distribution policy? The top federal individual tax bracket is 37% which was effective January 1, 2018. This is down from the previous year’s top Federal tax bracket of 39.6%. With an added 20% Section 199A benefit, the effective rate on your qualified business income could be 29.6%. This reduction could provide substantial tax savings and reduce your individual income tax liability. Why pay more in quarterly estimates during the year just to receive a substantial refund at year-end, thereby providing the IRS an interest-free loan?
Now is a great time to revisit your tax distribution policy and amend as needed to be in-line with the TCJA. With added tax benefits and reduced tax rates, you may be able to revise your federal and state quarterly estimated tax payments or W-2 withholdings and retain more funds in your company’s and/or your own pocket!
Back To Top
05/03/2019
I Just Received a Tax Notice, Now What?!?
First off, don’t panic. And don’t pay the notice right away.
Send a copy of the notice to your RubinBrown tax professional. Often tax notices are automatically generated by matching what was reported on your tax return to information that is provided by third parties to the IRS or state tax authorities. Sometimes notices are generated because the IRS has detected suspicious or unusual activity on your account. Sometimes the correspondence is a notification of examination. Notice activity among states has been particularly active as state budgets continue to be strained.
Remember, notices won’t go away until you address the underlying issue. Generally, depending on the matter and jurisdiction, notices come in three or four rounds about 30 to 45 days apart. By the 3rd notice, you have the risk of seizure or levy of your assets.
Whether it is: writing a letter, asking for an extension of time to handle the issue, negotiating waiver of penalties, or representing you in front of the tax authority, we are here to help. Give us a call.
Back To Top
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134
05/01/2019
FASB Proposes Revised Improvements to Income Tax Disclosure Requirements
The FASB has issued a revised exposure draft, Income Taxes (Topic 740): Disclosure Framework – Changes to the Disclosure Requirements for Income Taxes. The proposed amendments are part of the disclosure framework project, which has an objective to improve effectiveness of disclosures by facilitating clear communication of information that is most important to users. The proposal would remove disclosures that are no longer considered cost beneficial or relevant and add disclosure requirements identified as relevant.
05/01/2019
FASB Updates the Definition of Collections
The FASB has issued ASU 2019-03, Not-for-Profit Entities (Topic 958): Updating the Definition of Collections. Many not-for- profit organizations (such as museums, libraries, art galleries, etc.) maintain artwork or other historical treasures.
05/01/2019
RubinBrown Combines with Bradshaw Smith; Bolstering Services to Gaming Industry
RubinBrown LLP, the nation’s 42nd largest accounting and business consulting firm, is joining with the team members of Las Vegas-based Bradshaw Smith & Co. effective June 1, 2019. The addition of the Bradshaw Smith team members will allow RubinBrown to grow to become the second largest accounting firm in Las Vegas, as well as augment its flourishing gaming practice. John F. Herber, Jr., CPA, CGMA, chairman, RubinBrown, and Douglas S. Winters, CPA, managing partner, Bradshaw Smith jointly made the announcement.
04/30/2019
Focus on Cyber Security: Human Firewall or the Weakest Link - Preparing Your People
Email phishing attacks are sent to us at work, home and anywhere else we have email. Most of us use email filters to check these emails and cut down the number of bad messages we receive, but sometimes these filters can be bypassed. Avanan’s Global Phish Report analyzed more than 55 million emails and found that 1 out of every 100 contained a phishing attack.
04/26/2019
Questions Finally Answered… IRS Issues Regulations Related To Opportunity Zones
Last week, the IRS issued a second round of regulations related to the Qualified Opportunity Zone Program. This follows a first round of regulations that were released in October 2018. The new regulations provide more clarity and
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 help answer some persisting questions.
Here are a few of the common questions:
What is a “trade or business” for purposes of the opportunity zone incentive?
How do we decide when and how we can defer Section 1231 gains?
What is the definition of “substantially all” for purposes of qualified opportunity zone stock, partnership interest, and property?
Is raw land considered QOZBP?
Can a QOF or QOZB lease property and have it meet the definition of QOZBP?
What types of events will trigger deferred gain during an investors holding period in a QOF?
Does an investor have to sell the equity interest in a QOF after ten years, or can the QOF sell its assets with the gain still being tax-
free to the investor?
What happens to an investor if a QOF sells some of its QOZBP during the ten-year holding period?
How does an operating business pass the "more than 50% test?"
How does the "original use" test work if you purchase a yet-to-be completed building or a building that has been vacant for years?
The answers to these questions are provided by RubinBrown’s own Tony Nitti. Tony authors a column in Forbes, as well as provides training on the tax laws to practitioners across the country.
Click here to read Tony Nitti’s recent article in Forbes.
Click here to listen to Tony Nitti’s podcast that was posted on OpportunityDb.com.
RubinBrown was also honored to be a part of a panel discussion on opportunity zones at the Impact Investing Symposium at Washington University on April 25. Click here to check out the agenda.
Back To Top
04/17/2019
RubinBrown 2019 Gaming Statistical Analysis Shows Substantial Growth in U.S. Gaming Industry
United States Commercial Gaming Industry Generated $41.3 Billion in Gaming Revenues in 2018, up 3.4 Percent from 2017
04/10/2019
IRS Says Bond Financing Can Be Used for Housing for Vets, Farmworkers and Other Populations
RubinBrown Partner, Tim Anderson, was quoted in Affordable Housing Finance discussing recent IRS guidance that private- activity bonds can be used for veteran housing and others.
The IRS has recently clarified that tax-exempt private-activity bonds can be used to finance affordable housing developments for veterans as well as other populations.
This clarification was necessary after IRS officials noted that such housing was potentially a violation of public-use requirements in bond regulations last year.
Anderson was quoted saying, “Many people in the industry were asking for this ruling to help link Sec. 142 with Sec. 42 on this
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 issue. This guidance says yes, you can build homes for veterans and qualify for the credit and still take advantage of tax-exempt bond financing that’s available.”
Read the full article in Affordable Housing Finance.
Back To Top
04/08/2019
Cybersecurity Tips for Construction Companies
Technology continues to evolve at a rapid rate allowing construction companies to reinvigorate their approach to every day work through innovation and newfound efficiencies.
While it’s necessary to continue to invest and explore the latest in technological advances – including activities such as building information modeling, virtual reality, drones, robotics – it’s equally important to invest in cybersecurity resources to protect themselves.
Phishing scams are one of the most common ways that hackers attempt to infiltrate companies through the use of phony emails that appear to be from legitimate sources. This can result in malicious activity that takes many shapes.
A fraudster can compromise sensitive data by targeting company employees and luring them in to clicking on a malicious link that will infect the user’s computer with malware. Certain types of malware can apply passwords and other restrictions to critical data allowing the fraudster to hold it hostage, demanding a “ransom” be paid before its release (commonly referred to as “ransomware”).
Phishing scam perpetrators will also often imitate a company executive and instruct a CFO, controller or other employee with cash disbursement authority to wire an immediate payment to a specified bank account.
It’s not uncommon for fraudsters to observe company emails in order to allow them to reference recent projects or pose as a vendor that is due to receive payment – lending more credibility and legitimacy to the fake email. Many companies have fallen victim to this scheme and wired funds to criminals who deposit the funds into offshore accounts, which significantly reduces recovery.
Construction companies are exposed to cybersecurity risk due to the significant volume of sensitive, confidential data they are required to protect including but not limited to bid data, designs, materials pricing, profit/loss data, employee information, and banking records.
While dual factor authentication, web filters and other software and hardware protection measures are important, the most critical investment a company can make in protecting itself from attacks of this nature is to provide frequent trainings and prevention exercises to all employees at every level.
It is critical for construction companies to ensure they are devoting adequate resources to IT budgets, staffing levels and support. Since IT is an overhead center that does not generate revenue it can sometimes be undervalued and treated as a cost cutting area, however the risk exposure and cost of falling victim to one of these schemes will often far outweigh the savings.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134
Back To Top
04/01/2019
FASB Clarifies Implementation Guidance And Disclosure Requirements In Leases Standard
The FASB recently released its first Accounting Standards Update of 2019, ASU 2019-01 Leases (Topic 842) Codification Improvements. This ASU was released with the intent of clarifying conflicting or unclear guidance within the new leases standard that will be implemented under ASU 2016-02, Leases (Topic 842).
04/01/2019
FASB Proposes Guidance On Measurement Of Share-Based Payments Issued To Customers
The FASB has issued an Exposure Draft for public comment that is intended to address potential diversity in practice related to the measurement of share-based payments awarded to customers in conjunction with the sale of goods and services.
04/01/2019
GASB Issues Proposed Implementation Guide On Leases
The GASB issued GASB No. 87 Leases in June 2017 to amend the guidance regarding the accounting and reporting related to leases. As is customary for new standards, the GASB provides additional guidance through implementation guides.
03/14/2019
Tax Savings Related To Opportunity Zones
RubinBrown Partner Tony Nitti authored an article on the tax ramifications related to opportunity zones. This article appeared in The Tax Adviser.
In summary, the article details that the newly created qualified opportunity zones offer an intriguing tax planning option for investors and a potential boon for distressed communities.
The Tax Adviser article discusses the tax rules regarding investing in qualified opportunity zones through qualified opportunity funds, including:
The Tax Cuts and Jobs Act enacted new Sec. 1400Z-2, which provides a number of benefits designed to encourage investment in areas in low-income communities that are designated as qualified opportunity zones (QOZs). Under Sec. 1400Z-2, taxpayers may be able defer realized capital gains by reinvesting them in qualified opportunity funds
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 (QOFs) that conduct or own trades or businesses with property and business activity within the QOZs. These deferred gains may then be partially excluded from gross income if certain holding requirements are met. Taxpayers eligible to defer gains under Sec. 1400Z-2 include individuals, C corporations, passthrough entities, and trusts and estates. Gain that is eligible to be deferred is gain that is “treated as capital,” would be recognized for federal income tax purposes before 2027, and does not arise from a sale or exchange with a related party. Generally, within 180 days of a sale or exchange generating eligible gain, an eligible taxpayer may elect to reinvest all or a portion of the gain into a QOF, deferring its recognition until Dec. 31, 2026, or, if earlier, the date the taxpayer sells or exchanges the QOF interest. Once the taxpayer holds the QOF interest for a five-year period, 10% of the deferred gain is permanently excluded. Once the holding period reaches seven years, an additional 5% of the gain is excluded. If the holding period reaches 10 years, the gain arising after the 2026 recognition date is entirely excluded. QOFs must hold at least 90% of their assets as QOZ property, which includes QOZ business property (QOZBP), QOZ stock, or QOZ partnership interests. Even with the release of proposed regulations under 1400Z-2, many practical questions remain for taxpayers who are considering an investment in a QOF.
For more information about the Tax Cuts & Jobs Act, or the related opportunity zones, please contact one of RubinBrown’s Real Estate Services Group professionals.
Back To Top
Focus on Taxation & Real Estate: Tax Savings Related To Opportunity Zones
03/14/2019
Focus on State & Local Taxation: Time-Sensitive Review of Property Tax Notices
It’s that time of year when many businesses will be receiving a notice of value in the mail containing a reassessed value of their property. This could potentially mean an increase in property tax liabilities and significantly impact a business’s operating expenses and bottom line.
03/13/2019
Utilizing Drones in Construction
Many companies have taken to the sky to reduce costs and manage their job sites remotely. They can now check in on field operations in real time to view the progress at the job site and share the progress with their clients.
Reduce costs and increase efficiency by utilizing drones for:
Land surveying: Gives you great overview of the property and the surrounding areas that has decreased costs of surveying and helps contractors in estimating jobs. You can view and consider any challenges or savings your estimators can incorporate into the bid based on the information obtained. Inspection costs: Efficiencies gained on inspections as the drone can reach hard-to-get-to areas quickly. This can save time for your workforce and result in cost savings. Monitoring: Assists in monitoring workers on job sites especially pertaining to safety protocol and how hard people are or are not
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 working. Additionally, enables multi-job site monitoring in real time.
Savings on insurance: Some insurance companies offer a discount if you utilize drones to monitor your job site.
Promote your business and keep existing clients informed by:
Adding photos and videos to your sales group. Many people are visual and this can separate your company's proposal from the other bidders coming to the table.
Client updates and support for completion estimates. This provides a visual look at the project during development and billing process.
You will need to take time to do the analysis to determine to use internal or external drone operators. Some items you will have consider are the upfront costs of the equipment (hardware and software), liability and control, in making a decision on best approach for your business. Either direction will provide an additional tool for your business to utilize with immediate benefits managing job sites.
Back To Top
03/08/2019
Focus on Taxation & Real Estate: Tax Savings Related To Opportunity Zones
In summary, the article details that the newly created qualified opportunity zones offer an intriguing tax planning option for investors and a potential boon for distressed communities.
03/01/2019
FASB Issues Proposal And Invitation To Comment On Recognizing And Measuring Deferred Revenue In Business Combinations
The FASB has issued an Exposure Draft that is intended to address diversity in practice related to whether and how to record deferred revenue in a business combination. Current GAAP requires that a deferred liability be recorded in a business combination when the acquirer assumes a legal obligation.
03/01/2019
FASB Proposes Targeted Transition Relief To Institutions Applying The Credit Losses Standard
The FASB recently issued an Exposure Draft titled Targeted Transition Relief for Topic 326, Financial Instruments—Credit Losses.
03/01/2019
Focus on Taxation: Providing Clarity on Section 199A
RubinBrown Partner Tony Nitti recently took part in a nonpartisan tax think tank which debated the pros and cons of the new Section 199A, more widely known as the 20% pass-through deduction.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 02/27/2019
Communicate Often To Ensure Your Jobs Stay On Budget
Given the significant growth in the construction and engineering industry over the past few years, construction companies in today’s environment have been more focused on managing the work in front of them (day-to-day operations) and sometimes fall short with communicating job status to the accounting team.
While management’s focus on revenue drivers of their business (job site work, customer relations, etc.) is important, we can’t forget other “back office” aspects of the business (accounting, budgeting, financial planning, etc.).
Poor communication between operations and accounting can lead to surprises at the financial statement level and leave a company in a difficult position.
In order to prevent any “surprises” at the conclusion of a project, construction companies should consider the following best practice policies:
Hold meetings on a regular basis (monthly is suggested, but quarterly may be reasonable depending on
the size of your projects) between the accounting team and the project management team. The accounting team should include the CFO and/or Controller while the project management team should include the project managers, project superintendents and estimators. During these meetings, the project management team should provide updates on the status of the project and provide any changes to total contract values and total estimated costs. This allows the company to update their estimates throughout the project rather than just at the end.
Ensure the project management team fully understand the financial components of construction accounting. For instance, many project managers view percent complete as the amount of billings to date relative to total allowed billings, when in reality they should be calculating percentage of completion as costs to date relative to the total estimated costs.
Promote transparency and honesty with your team. The saying, “bad news does not get better with time” applies here. Understanding that there may be a cost overrun when the
project is at 50% allows the company to accurately adjust the profit on the job and not pay taxes on revenue that hasn’t truly been earned. Also, if this news is provided near the end of
the project, those costs may have to be absorbed with no opportunity of recuperation.
While being proactive with your “back office” functions can take more time in the interim, integrating the accounting team with the project management team will provide for stronger project management and more predictable financial results.
Back To Top
02/27/2019
Expectations of the Home Building Market in 2019
After a slow sales end to 2018, the home building market has gotten off to a solid start in 2019. Declining mortgage rates, improved performance in the stock market, and solid job growth have helped improve home buyer confidence in the last couple of months.
2018 was a year of challenging supplier and subcontractor vendor cost increases that builders were not able to fully absorb. As a result, gross margins declined in the industry by 1-3%. 2019 should allow home builders a chance to better manage their costs and improve gross and operating profits.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Finally, as a reminder, direct construction costs are the biggest cost a home builder occurs. Even a small reduction in direct construction costs as a percentage of sales price can significantly increase a builder’s bottom line. Any cost that can be removed from a house and multiplied with direct construction cost savings from other units can provide substantial income improvement.
Back To Top
02/27/2019
Hear the latest about Opportunity Zones at AHF Live Housing Developers Forum
RubinBrown Partner Amy Broadwater will be presenting on an opportunity zone panel at the upcoming AHF Live Housing Developers Forum. The conference attracts developers, investors, financial experts, and other stakeholders from across the country to network and learn about trends in the affordable housing industry. This year’s conference is April 1-3 in Las Vegas, Nevada.
Amy has deep experience in the affordable housing industry, including deal structuring, tax consulting, and partnership taxation and has accepted speaking invitations at many different industry conferences across the country. Amy has been helping lead RubinBrown’s Opportunity Zone Initiative and has been involved with researching and consulting on opportunity zones since the program’s creation by the Tax Cuts & Jobs Act in December 2017.
Click here to view Amy’s biography.
Click here to visit the AHF conference link.
Back To Top
02/22/2019
Focus on Corporate Finance: Measuring Project Returns for Capital Budgeting
Capital budgeting, the process of deciding which projects and investment opportunities to invest in is a critical aspect of a firm’s long-term success. Make the wrong decision and instead of creating value a company will end up reducing value. Make enough poor decisions in the capital budgeting process and the survival of the company may be at stake. How do you decide which projects have the potential to create value versus those that destroy value? You have to identify value creating opportunities by measuring the project’s or investment’s return.
02/20/2019
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The Multi-Family Industry Grows Throughout 2017
The multi-family industry continued to experience above-average performance in 2017.
There were 336,000 multi-family units completed in 2017, an increase over the 321,000 units completed in 2016. According to the Fannie Mae 2018 Multi-Family Affordable Housing Outlook, most new supply over the past few years has been focused in high-rent segments.
Interestingly, there has been little growth in stock of affordable multifamily housing. Strong demand for multi-family rentals has prompted developers to renovate more affordable housing to higher-rent units.
The impact of the two trends has been that while the number of Class A units have grown by an estimated 1.1 million to 5.0 million total units since the end of the recession, the number of Class B/C units remained virtually unchanged at an estimated 5.7 million units (Reis, Inc.) We expect to see this trend continue as information on 2018 becomes available.
According to the Joint Center for Housing Studies of Harvard University, the number of multi-family units declined slightly over the past year and expanding supplies of new luxury apartments pushed up rental rates.
According to data from the National Council of Real Estate Investment Fiduciaries, net operating income for investment-grade multi-family properties in 2017 grew 3.4% from 2016.
In addition, the annual rate of return on rental property investments was 6.4% for 2017. Rental property prices and sales remain strong. Real Capital Analytics (a commercial real estate database which tracks prices for rental properties and portfolios of at least $2.5 million), reports that nominal apartment property prices rose at a 12% annual rate averaged in 2014 – 2017.
As a result, apartment prices now stand 30% above the mid-2000s peak in real terms.
Back To Top
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134
02/19/2019
AGC’s Economic Forecast For Contractors
RubinBrown leaders recently attended the Associated General Contractor’s Financial Issues Committee semi-annual meeting. Ken Simonson, Chief Economist for AGC of America presented his economic outlook. Below are the highlights of his outlook.
The US economy is strong and growing:
3.5% third quarter real GDP growth, rising employment and pay
Consumer, business confidence are generally high; recession possibility is low
Home & auto sales are slowing; trade & fiscal policy concerns remain
Contractors remain busy and confident; construction employment at 10- year high, but several spending categories have slipped or stalled in past few months
Three concerns:
Impact of trade policies on materials costs and demand for construction
Widening labor shortage, worsened by hostile immigration policy
Rising interest rates may cut demand for income-producing projects, new homes
The AGC member expectations for 2019 are for dollar volume of projects to be higher in every construction category ranging from expected growth to be the lowest at 5% in multifamily residential to the highest at 17% in public building.
Back To Top
02/18/2019
Focus on Taxation: Analysis of the New Tax Law
Last week, RubinBrown Partner Tony Nitti spoke on a panel that analyzed the new tax law, as well as the latest views about the law among taxpayers and journalists.
02/13/2019
Vacancy Rates For Rentals On The Rise
According to the Joint Center for Housing Studies of Harvard University, the national vacancy rate for all rental units averaged 7.2% in 2017, an increase from 6.9% in 2016.
Meanwhile, according to the Fannie Mae 2018 Multi-Family Affordable Housing Outlook, vacancies for rent-restricted affordable housing properties remains historically low.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 At the close of 2017, Reis, Inc. estimates a 1.9% vacancy rate for rent-restricted properties, which consist of multi-family rental properties assisted with federal Low Income Housing Tax Credits (LIHTC) and Section 8 project-based vouchers, reflecting the demand for all types of affordable multi-family rentals.
Back To Top
02/12/2019
Research and Experimentation in the Construction Industry: You May Qualify For a Tax Credit!
The Credit for Increasing Research Activities, also referred to as the “R&E”, “R&D”, or “Research” tax credit, incentivizes companies to invest in people and technology that can lead to growth in revenues and profitability, as well as promote job retention and expansion.
The credit focuses on three types of qualifying expenditures: wages, supply costs, and contract research.
We’re contractors, we don’t have scientists in white lab coats, how can we qualify for a research credit?
Simply defined, the R&E Tax Credit is a federal incentive that rewards taxpayers for the development and/or improvement of a product, process, formula, invention, technique, or software. For a contractor, the first question is, are you at economic risk under the contract terms for the development or improvements to designs?
If you pass the risk hurdle, then some additional questions to ask are:
Do you make improvements to designs in the field arising from value engineering opportunities, unanticipated site conditions, etc.?
Are you a design/build contractor?
Do you have a pre-fab shop?
Are you utilizing CAD and/or BIM in the development of your designs?
Does your company have a patent?
Have designs or projects failed and needed to be reworked before or during construction?
Many architects and engineers, electrical and mechanical contractors, and general contractors have qualified for the R&E Tax Credit.
If you have further questions regarding this valuable tax incentive, contact your RubinBrown Construction Services team member today.
Back To Top
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 02/08/2019
Focus on Cyber Security: Requirements in the Colorado Protections for Consumer Data Privacy (HB18-1128)
In response to the increasing number of massive data breaches over the last several years, the Colorado legislature passed new requirements for protecting the personal information of Colorado residents. The Colorado Protections for Consumer Data Privacy (HB18-1128) applies to public and private organizations that handle, process, store or otherwise have access to electronic or printed personally identifiable information (PII) of Colorado residents.
02/06/2019
New Tax Law & Affordable Housing
The Tax Cuts & Jobs Act (the Act) was signed into law at the end of 2017 and certainly has an impact on the affordable housing industry.
While tax reform left LIHTC intact; the decline in the corporate tax rate from 35% to 21% is expected to have negative consequences for new rent-restricted supply.
Tax credits are now less valuable and prices have declined since discussions on implementing a corporate tax cut began in 2017. Developers may struggle with new projects to fill the financing gap resulting from lower proceeds from investment in LIHTC due to this decline.
The Act allows investors to defer paying tax, up to nine years, on gains if those gains are invested in Qualified Opportunity Funds that in turn invest in economically distressed communities (known as opportunity zones) designated by the governor of each state.
Back To Top
02/04/2019
RubinBrown Hires Renowned Tax Expert and Luminary as Partner
RubinBrown LLP, one of the nation’s top 50 accounting and business consulting firms, recently hired Anthony J. Nitti, CPA, MST, as a partner in its Tax Services Group. Nitti is a well-known contributor of tax content to Forbes, as well as a frequent speaker and trainer at seminars and webcasts across the country.
02/01/2019
FASB Proposes Alternative To Accounting For Goodwill And Certain Identifiable Intangible Assets For Not-for-Profit Entities
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 FASB recently issued an Exposure Draft related to potential changes to the treatment of goodwill and certain other intangible assets for not-for-profit entities that would allow not-for-profit entities the same accounting alternatives made available to private for-profit companies.
02/01/2019
FASB Proposes Codification Improvements To Lessor Implementation Of New Leases Standard
The FASB has issued a proposal that would address challenges to implementing the FASB’s new lease standard.
02/01/2019
GASB Issues Proposal For Implementation Guide On Fiduciary Activities
The GASB issued GASB No. 84 Fiduciary Activities in January 2017 to improve the guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. As is customary for new standards, GASB provides implementation guidance via the standard and implementation guides.
01/30/2019
Millennials & Housing Trends
Demand for housing is driven primarily by an increase in household growth, which is expected to remain strong based on aging millennials and the overall population.
According to the Joint Center for Housing Studies of Harvard University, with a large portion of the millennial population now in its early 30s, adults under age 35 formed 10.5 million new households in 2012 – 2017, which is 1.5 million more than in the previous five-year period.
The millennial generation will continue to lift household growth for years to come.
Back To Top
01/30/2019
Focus on Taxation: Much Anticipated Final Regulations Issued on 199A
On January 17, 2019, the IRS delivered final regulations on one of the most complicated provisions of the new tax law, Section 199A, commonly referred to as the 20% pass-through deduction. The regulations provide clarity and much needed guidance on
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Section 199A that was enacted on December 22, 2017, as part of the Tax Cuts and Jobs Act. Along with the final regulations the IRS also issued two significant rulings; one allows a safe harbor for certain rental properties and the other a method of determining W-2 wages.
01/24/2019
Buy-Sell Agreements for Contractors: What You Need To Know!
Construction firms spend time devising strategies around labor shortages, challenging projects, developing backlog, new tax rules, state of the economy and many other areas.
In addition to these, it is vitally important to ensure that you have a crisis plan in place if something catastrophic were to happen. One area to consider is your company’s buy-sell agreements. Some businesses either don’t have buy-sell agreements in place or don’t periodically review them.
A buy-sell agreement governs the transfer of ownership of a company in certain circumstances. If a buy-sell agreement is not in place or is not effective, the impacts of an event may result in consequences not desired by the business or family. Generally, buy-sell terms become relevant upon defined events taking place. Examples of such events include the following:
Death or disability
Retirement
Severed Employment
Succession
Upon an event, the buy-sell acts as a road map on how to transfer the ownership interests as defined. Agreements generally dictate pricing terms/options, methods of transfer and the timing, among other things. We often recommend that certain discount features be included in the buy/sell agreements to ensure the stock redemption does not cripple your company or other shareholders financially.
It is important to routinely include reviewing these agreements in annual strategic planning sessions. Ensure that your construction attorney and accountants and other key stakeholders have reviewed the documents. An effective strategy will provide comfort that if something happens that is not planned, you have made good decisions to protect your family, teams and the investment in the business.
Back To Top
01/16/2019
Senior Citizens & Housing Trends
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 While the number of young adults impacting the housing demand will continue to grow, the older population is growing faster.
According to projections by the Census Bureau, the total U.S. population age 65 and older will reach 79 million in 2035. This represents an increase of 31 million over the same statistic in 2015.
The largest increase in the housing demand of older adults is expected to come from single-person households. A 2014 survey conducted by AARP indicated 88% of adults 65 and over want to remain in their homes as they age.
The decision of older households to age in place will require additional accessible housing with supportive services.
Back To Top
01/11/2019
Focus on Public Sector: GASB Posts Proposed Implementation Guide on Fiduciary Activities
In January 2017, the Governmental Accounting Standards Board (GASB) issued Statement No. 84, Fiduciary Activities (Statement). The requirements of the Statement are effective for reporting periods beginning after December 15, 2018 (i.e., December 31, 2019 year ends and fiscal years ending in 2020).
01/10/2019
New Tax Deferral Strategy for Small Contractors
The new tax law provides a new and substantial tax benefit for small contractors.
Under the new law, a contractor is considered “small” if the average revenue of the prior three years is below $25 million. A small contractor is exempt from using the percentage of completion method for tax purposes. Thanks to the new tax reform, a small contractor may choose to use an exempt method such as completed contract or the cash method of accounting to account for its qualifying long term contracts.
Under the old rules, average gross receipts for the preceding three tax years of $10 million or less qualified for this exempt method. This is a new and significant tax deferral strategy if your company revenue falls between $10 million and $25 million. Most small contractors should consider the use of the completed contract method, which provides a deferral of gross profit to date on each long-term job. The new rule is effective for contracts entered into after January 1, 2018, so even fiscal year filers could benefit from this new law.
For example, assume a small contractor has a $5 million contract. Total expected cost is $4.5 million for ending gross profit of $500,000. If this job was entered into in 2018 and is 85% complete at year end, then gross profit of $425,000 would be required
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 to be recognized under the percentage of completion method. Under the completed contract method, with the same contract facts, the gross profit recognized is zero. This is a significant tax deferral until the contract completes in the following year. This tax savings can help contractors better utilize cash flow.
While this deferral could be very beneficial, keep in mind that alternative minimum tax (AMT) will still follow percentage-of- completion, resulting in a potential increase to AMT income for individual owners. This applies in the case of S Corporations and Partnerships, but will not apply to C Corporations, as corporate AMT has been repealed under the new tax law.
Back To Top
01/02/2019
Affordability of Housing
The strong demand for units is coupled with an affordability crisis.
According to the State of the Nation’s Housing 2017, only 31% of renters are able to afford the $1,550 median asking rent for a new apartment in 2017.
By comparison, in 1990 41% of renters could afford the $1,064 real median asking rent for new units. Supply of low-cost units has also decreased.
A Hudson Institute analysis found that 60% of low-cost units in 1985 were lost by 2013. As a result of the supply and demand imbalance, the affordable housing industry is expected to remain strong.
According to the Joint Center for Housing Studies of Harvard University, the long-term outlook for rental housing demand is positive as increasing numbers of millennials form new households and older households switch from owning to renting.
A 2016 National Low Income Housing Coalition study found that for every 100 extremely low-income renters, only 35 rental units were affordable and available which is a nationwide shortfall of more than 7.2 million units.
Conditions for very-low income renter households improved slightly with 56 affordable and available rentals per 100 households.
Additionally, there is tremendous demand for affordable housing among the nation’s 15.5 million very low and extremely low- income households. Conditions in the affordable market will continue to remain strong with strong demand and diminishing supply.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134
Back To Top
01/01/2019
FASB Issues Narrow-Scope Improvements To Credit Losses Standard
The FASB recently issued ASU No. 2018-19: Codification Improvements to Topic 326, Financial Instruments – Credit Losses. The ASU intends to clarify the scope of the amendments in ASU No. 2016-13 and to align the implementation date for nonpublic entities’ annual financial statements with the implementation date for their interim financial statements.
01/01/2019
FASB Proposes Narrow-Scope Improvements To Financial Instruments Standards
The FASB recently issued an Exposure Draft that is intended to address certain questions that have arisen regarding the implementation of a number of newly issued ASUs related to recognition and measurement of financial instruments, credit losses and targeted improvements to hedge accounting.
01/01/2019
FASB Revises New Leases Standard For Lessors
The FASB has issued ASU No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors. The ASU is intended to resolve various implementation questions and issues raised by lessors relative to ASU No. 2016-02, Leases (Topic 842), a pronouncement which significantly modifies the required accounting treatment for leases and which becomes effective on January 1, 2019 for public business entities, and on January 1, 2020 for all other entities.
01/01/2019
GASB Proposes Additional Implementation Guidance
The GASB has issued an Exposure Draft entitled GASB Implementation Guidance Update-2019. The GASB periodically issues implementation guidance to assist practitioners in implementing GASB Statements and to answer frequently asked questions. The implementation guidance takes the form of questions and answers on a variety of governmental accounting topics.
12/20/2018
RubinBrown Welcomes Amanda Hill to its Entrepreneurial Services Group
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently welcomed Amanda Hill, CPA, as a manager in the Entrepreneurial Services Group for its St. Louis office.
12/19/2018
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Taxation: IRS Provides Guidance on Employee Parking Provisions of New Tax Law
On December 10, 2018, the IRS issued long-awaited guidance on the application of one of the new tax provisions added by the Tax Cuts and Jobs Act, Section 274(a)(4). This provision under the Act is effective January 1, 2018. Notice 2018-99 provides guidance for taxable entities on how to compute the non-deductible amounts related to parking provided to employees under IRC Section 274(a)(4).
12/18/2018
Focus on Taxation: Employers May Qualify for Tax Credits for Paid Family and Medical Leave
The 2017 Tax Cuts & Jobs Act grants employers who voluntarily offer qualifying employees up to 12 weeks of paid family and medical leave annually, a tax credit for a portion of wages paid in 2018 and 2019. In order to be eligible for the credit, the employer’s written policy containing specific language must be in place before the leave is taken.
12/18/2018
Richard Hickey Joins RubinBrown’s Denver Office as Tax Manager
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently welcomed Richard Hickey, CPA, as a manager in the Tax Services Group for its Denver office.
12/17/2018
RubinBrown Welcomes Aaron Wilcox as New Assurance Manager
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently welcomed Aaron Wilcox, CPA, CGMA, as a manager in the Assurance Services Group for its Las Vegas office.
12/17/2018
Vacancies for Rent-Restricted Affordable Housing Properties Remains Historically Low
While the multi-family industry continued to experience above-average performance in 2017, vacancies for rent-restricted affordable housing properties remains historically low, creating a nationwide shortfall of more than 7.2 million units.
12/14/2018
Long-Term Outlook for Rental Housing Demand Remains Positive
As increasing numbers of millennials form new households and older households switch from owning to renting, the long-term outlook for rental housing demand remains positive, according to the recently released 2018 Apartment Statistical Analysis report from RubinBrown.
12/14/2018
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 RubinBrown Releases 2017 Denver Metropolitan Area Public Sector Statistical Analysis
Municipalities surveyed in the Denver region over the past five years indicate conditions continue to improve and have been since 2013.
12/14/2018
RubinBrown Releases 2017 Kansas City Metropolitan Area Public Sector Statistical Analysis
Municipalities surveyed in the Kansas City metropolitan area showed significantly improved results over 2016 numbers.
12/14/2018
RubinBrown Releases 2017 St. Louis Metropolitan Area Public Sector Statistical Analysis
More cities in the St. Louis region ended the year with a surplus than in the past.
12/14/2018
RubinBrown Releases 2017 State of Tennessee Public Sector Statistical Analysis
Many cities in the State of Tennessee have very healthy financial positions and have experienced positive results of operations.
12/13/2018
The Evolving Challenge of Work-Life Balance
A company that is able to effectively manage the challenge of providing employees with a work-life balance will have stronger retention, higher productivity and will experience higher employee morale.
As modern technology steadily advances at a rapid rate and the wide use, availability and affordability of smartphones, tablets and smaller laptops continues to increase, employees are empowered to be more efficient in their daily tasks and can work just about anywhere at any time. While efficiency and flexibility are paramount to maximizing the utilization of today’s worker, this also presents the challenge of forming necessary boundaries between personal and professional life.
Behind us are the days of leaving the office along with the work that is physically stored there. Imaging and paperless initiatives have become the norm for many companies. Email, virtual private networks (VPNs) and file sharing have evolved in such a way that access to information and tools necessary for employees to perform their duties are available 24 hours a day, 7 days a week. With this drastic shift, how do employers set expectations in a manner that continues to provide their employees with these resources that allow for efficiency and flexibility while avoiding the risk of turnover due to fatigue and burnout?
Given the labor shortage in the construction industry, the strong global construction market experienced in recent years, the industry’s requirements for when an employee may have to physically be on a jobsite and the polarizing nature of this discussion, it
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 is critical for employers in the industry to devote the proper attention and resources to enhance their employees’ experiences. Failing to do so can have a negative impact not only on the morale and quality of work, but it can also result in a higher rate of safety failures or incidents while limiting a company’s growth opportunities.
In order to address this challenge, it is important for employers to tap into the goals, key motivating factors and preferences of their employees. This can often be effectively achieved through small focus group discussions, company-wide surveys and creating internal initiatives or task forces to enhance the employee experience. None of that information grab will matter if it is not utilized to inform management of their employees’ preferences in an effort to ensure expectations placed on employees incorporate the ability to set healthy boundaries between work life and personal life.
A company that is able to effectively manage this challenge of work-life balance will have stronger retention, higher productivity and will experience higher employee morale. In achieving this, companies will give themselves a competitive advantage in a marketplace where work-life balance is a constant struggle.
Back To Top
12/12/2018
Focus on Not-For-Profits: IRS Issues Guidance on How to Compute UBTI Related to Providing Parking to Employees of Tax- Exempt Entities
On December 10, 2018, the IRS issued long-awaited guidance on the application of two new tax provisions added by the Tax Cuts and Jobs Act. The provisions under this Act are effective January 1, 2018. Notice 2018-99 provides guidance for tax-exempt entities on how to compute the additional Unrelated Business Taxable Income (UBTI) generated related to parking provided to employees under IRC Section 512(a)(7).
12/04/2018
Focus on R&E Tax Credits: New Tax Law Increases the Benefit of the Research & Experimentation Tax Credit
The Credit for Increasing Research Activities, also referred to as the “R&E”, “R&D” or “Research” tax credit, incentivizes companies to invest in people and technology that can lead to growth in revenues and profitability, as well as promote job retention and expansion. The credit focuses on three types of qualifying expenditures: wages, supply costs and contract research.
12/03/2018
FASB Improves Consolidation Accounting
The FASB has issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities.
12/03/2018
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 FASB Issues Improvements To Accounting For Collaborative Arrangements
The FASB has issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606. This ASU clarifies the applicability of Topic 606 to collaborative arrangements with the ultimate goal of reducing diversity in practice.
12/03/2018
FASB Proposes Improvements To Accounting For Episodic Television Series
The FASB has issued an Exposure Draft titled, Improvements to Accounting for Costs of Films and License Agreements for Program Materials.
12/03/2018
FASB Updates List Of Permissible U.S. Benchmark Interest Rates For Hedge Accounting
The FASB has issued ASU 2018-16 (amendment to Topic 815) titled Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes.
12/03/2018
Tim McCormack Joins RubinBrown as Manager of Private Equity Services
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently welcomed Tim McCormack, CPA, CGMA, as a manager in the Private Equity Services Group for its Denver office.
11/29/2018
New Revenue Recognition Guidance – Unique Considerations for Construction Companies
Construction companies must consider contract modifications, performance obligations, variable consideration, uninstalled materials and contract costs when accepting guidance on the new revenue recognition standard.
The new revenue recognition standard is effective for all private companies for their years beginning after December 15, 2018
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 and must be analyzed for the opening balances of the earliest year presented. With this, companies must analyze their revenue streams to determine any changes in accounting as well as internal control procedures that are required in connection with the implementation. This has many companies asking, “How does it affect me?” Construction service companies have some unique issues that must be addressed, including:
Contract modifications. A contract modification is a change in the scope or price (or both) of a contract that is approved by the parties of the contract. Generally, a change order and contract modifications are considered revisions to the existing contract. However, a change order could potentially be a separate contract if the increase results in a separate distinct good or service and the price increase represents a stand-alone selling price. Performance obligations. A performance obligation is a promise to transfer a good or service that is distinct or a series of distinct goods or services. A good or service is considered distinct if the customer can benefit from the good or service on its own or with other readily available resources and if the promise is separately identifiable from other promises in the contract. Items should not be considered distinct if there is a significant service of integration with other goods or services; if goods or services are significantly modified or customized; or if the goods or services are highly interdependent or highly interrelated. Contracts with multiple services such as construction/maintenance elements or two distinct construction services (for instance, the combination of a construction service that a subcontractor could perform and general contractor services under one contract) could be separate performance obligations under the new revenue recognition guidance. In such a case, the contract price would be allocated as allowed within the guidance to the applicable performance obligations. Variable consideration. Variable consideration includes any pricing elements in the contract that are not fixed including unpriced change orders, claims, liquidated damages, incentives, penalties, economic price adjustments, bill rate adjustments and other pricing changes. For construction service entities, these changes are commonplace in the industry. Controls and processes should be put in place so that variable consideration is included in the contract price at the time that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. Uninstalled materials. The construction services company should first consider whether the items qualify for recognition as inventory, which would primarily relate to standardized items that can be transferred and used on many job sites. Uninstalled materials accounting should be considered when the materials cost incurred is not proportionate to the entity’s progress in satisfying the performance obligation(s). In this case, the best depiction of the entity’s performance may be to adjust the input method by recognizing revenues only to the extent of the costs incurred if: the good is not distinct; the customer obtains control significantly before receiving the services related to the good; the cost to transfer the good is significant; the entity procures the good from a third party; and the entity is not significantly involved in designing and manufacturing the good. Depending on the nature and size of the materials, consideration should be made as to the timing of gross profit recognition on the uninstalled materials as or when the materials become installed. Additionally, it may be appropriate to remove the good from the revenue recognition calculation altogether depending on the relevant circumstances. Contract costs. Incremental costs of obtaining a contract, such as sales commissions, should be charged to expense over the period during which goods or services are transferred to the customer. Costs to fulfill a contract should be capitalized if: the costs relate directly to a contract or an anticipated contract that the entity can separately identify; costs generate or enhance resources that the entity will use in satisfying the future performance obligations; and the costs are expected to be recovered. Under this guidance, bond costs may require capitalization and amortization over the life of the contract, if significant. Certain costs such as the following should be excluded from the revenue recognition process and instead be considered period costs: costs that would be incurred regardless of obtaining the contracts; general and administrative costs; wasted materials; significant inefficiencies; owner provided materials; and others.
The analysis of these issues among others within the new standard will help reduce divergence in practice under current, generally accepted accounting principles. However, because of the long-term nature of construction service entity contracts, the process for evaluation should be performed now in order to avoid surprises for sureties, bankers and owners.
Have you started the implementation process for the new revenue recognition standard?
Back To Top
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134
11/07/2018
Selecting Software – Tips for the Construction Industry
According to the “Construction Technology Trends 2018 Report,” approximately 81% of construction companies indicated that they planned to spend more on technology in the current year compared to last year. Some of that investment involves replacing outdated software or upgrading to more integrated, user-friendly software. But where to start? Below is a three-step guide for those in the construction industry:
Step 1: Evaluate Cost. Cost is a huge factor in new software and you must balance what you need versus what you want to spend. Items that can impact cost include:
Company size and number of users - for example, cloud-based solutions are usually priced based on the number of users and the modules or features you want to access. Development of specialized reports – are they included or extra? Upgrades - is there a monthly maintenance cost or do you pay for updates as you go? Storage and backup – are there costs associated with additional storage or backup procedures?
Step 2: Evaluate ease of use and mobile capabilities. The software you select should:
Be user-friendly for both field staff and management. Be easily accessible for both field staff and management. Can you access the software anytime, anywhere from a desktop or laptop computer as well as a mobile device (iPad, iPhone, etc.)? Does it allow for VPN access, screen sharing and more?
Step 3: Evaluate your company’s unique needs. Some questions to ask include:
Will this software grow with your business? Do you want an integrated system? (i.e., if you enter data in one module it automatically updates another). Modules specific to your business outside of an accounting system such as:
Project management Estimating & job costing Building Information Modelling (BIM) Service management Document management
To build a list of potential software vendors, try reaching out to the industry associations affiliated with your company for recommendations – some may even offer member discounts!
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134
Back To Top
11/07/2018
Focus on Taxation: Meals & Entertainment Changes Related to Tax Reform
The Tax Cuts and Jobs Act (the Act) has altered the limitations and deductibility of certain meals and entertainment expenses incurred after December 31, 2017. Under the prior law, entertainment expenses that were directly related to active conduct of the taxpayers’ trade or business were 50% deductible. As of 2018, entertainment expenses are non-deductible under the new tax act, unless otherwise noted in Code Section 274(e).
11/01/2018
GASB Issues Proposals Designed To Improve Government Financial Reports And Establish Recognition Concepts
The GASB has issued two Preliminary Views proposals. The first, Financial Reporting Model Improvements, proposes improvements to key components of the financial reporting model. The second, related document, Recognition of Elements of Financial Statements, proposes new concepts intended to guide the GASB in developing standards on recognition in financial statements.
11/01/2018
GASB Issues Statement On Majority Equity Interests
The GASB recently issued GASB Statement No. 90, Majority Equity Interests.
10/30/2018
M&A Activity High in the Construction Industry
An article titled “M&A Activity High in the Construction Industry,” written by Chris Daues, a Manager in RubinBrown’s Assurance Services Group, was recently published in CE This Week, Construction Executive’s weekly e-newsletter.
Daues discusses how the M&A and private equity space offer new avenues for construction firms to divest, diversify and grow; an excerpt appears below:
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 There is no doubt that construction activity in the mergers, acquisition and private equity space is more prevalent throughout most of the country than has been seen in many years. This prevalence is a positive trend for the industry as it increases opportunities for growth and offers more options with succession planning for construction business owners. As the result of a growing population in metropolitan areas and aging infrastructure, construction spending in the U.S. continues to rise.
Read the full article in Construction Executive.
Back To Top
10/24/2018
Focus on State & Local Taxation: Big Changes in Colorado As New Sourcing Rules Take Effect
Effective December 1, 2018, the Colorado Department of Revenue will begin enforcing new emergency sales tax sourcing rules that will significantly impact all retailers doing business in Colorado. The new rules require all Colorado taxable sales to be taxed at the effective rate of the jurisdiction in which property is transferred into the possession of a purchaser. While the rule has no effect on purchases that occur at a retailer’s business location, the big change occurs when items are shipped to Colorado customers.
10/23/2018
Technology Trends in the Construction Industry
As technology continues to improve, construction companies must adapt in order to keep up with the trends in the industry.
Technology is transforming the industry and implementing new technologies requires strategic, long-term planning. Here are some trends to consider:
Building Information Modeling
Building Information Modeling (BIM) is a 3D model-based process that allows architects, engineers and contractors to collaborate on projects, giving each party better insight on how their work fits into the project. BIM connects these professionals so they can
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 efficiently design, build and operate buildings and infrastructure. The realistic visualizations can also help to gain faster approvals and avoid surprises.
Virtual Reality
Virtual Reality (VR) can be used in conjunction with BIM. The main benefit of VR is the ability to provide virtual walkthroughs to clients or targets in order to give them a better idea of what their investment will look like before construction begins.
Drones
Drones can be used to quickly and effectively map a construction site, as well as analyze the progress of a project. Using drones, construction companies are able to get the job done faster and cheaper than with traditional methods.
Robots
As a shortage of skilled labor continues in the construction industry, robots may become more and more common. Although full automation of most tasks is not currently possible, as breakthroughs in robotics technology continue, the applications in the construction industry will grow as well. In short, robotics could help fill the skilled labor gap and complete projects more quickly, safely and cheaper than the alternative.
To stay up to date on other trends within the construction industry, subscribe to RubinBrown's ViewPoints Construction Services Blog.
Back To Top
10/04/2018
RubinBrown Welcomes Don Mapes to its Denver Office
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently welcomed Don Mapes, CIA, CISA, CSX, as a manager in the Business Advisory Services Group for its Denver office.
10/01/2018
FASB Amends Disclosure Requirements Related To Defined Benefit Plans
The FASB has issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715- 20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.
10/01/2018
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 FASB Improves Guidance For Insurance Companies That Issue Long-Duration Contracts
The FASB has issued ASU 2018-12 that improves financial reporting for insurance companies that issue long-duration contracts, such as life insurance, disability income, long-term care, and annuities. The changes do not apply to policy holders.
10/01/2018
FASB Issues Changes To Disclosure Requirements For Fair Value Measurements
The FASB has issued ASU 2018-13 – Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. This ASU was issued as part of the FASB’s ongoing disclosure framework project that seeks to improve the effectiveness of disclosures in the notes to financial statements.
10/01/2018
GASB Issues Conduit Debt Obligation Exposure Draft
The GASB has been working on a project for the past year and recently published an Exposure Draft of the proposed statement. The Exposure Draft proposes a single method of reporting conduit debt obligations, which would replace the previous optional methods. The Exposure Draft also would provide some additional clarity on what constitutes a conduit debt obligation.
09/28/2018
New Pass-through Deduction for Fiscal Year Filers Provides Tax Benefit
Contractors, home builders, architects and engineers shouldn’t lose out on the potential tax benefits of the new pass-through deduction, even if they are a fiscal year filer.
Over the summer, the IRS issued various sets of regulations to assist with the interpretation and application of the new tax law, the Tax Cuts and Jobs Act, which was passed in December 2017.
One facet of the law that contractors, home builders, architects and engineers must pay close attention to is the pass-through deduction (also known as Section 199A, or the Qualified Business Income deduction). This new law allows pass-through entities, generally partnerships and S-Corporations, to exclude 20% of its qualified business income from its taxes.
Where the law gets tricky is the application of the deduction to a fiscal year filer. The law is effective for tax years beginning after December 31, 2017. However, because the deduction is claimed at the partner or shareholder level and nearly every individual taxpayer files on a calendar year end, even fiscal year entities could qualify for and pass out this deduction to its owners.
Let’s take imaginary company ABC Electric Co., an S-Corporation electrical contractor with a September 30, 2018 year end, as an
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 example. The flow-through activities of the company will be reported on the owners’ 2018 individual income tax returns, allowing those owners to claim the new pass-through deduction benefit – a benefit they should certainly not miss out on.
If you have questions regarding the application of this new tax benefit to your company, contact your RubinBrown Construction Services tax professional.
Back To Top
09/27/2018
RubinBrown Manager, Curtis Smith, Graduates from Diversity Fellowship Program
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, is pleased to announce that Curtis Smith, CIA, CISA, recently graduated from the St. Louis Business Diversity Initiative Fellows Program.
09/26/2018
Focus on Revenue Recognition: Disclosures & Internal Controls
Legacy GAAP disclosures were often criticized as inadequate given the complexity and variability of transactions across entities and industries. In response, the new standard gives both a comprehensive set of disclosures along with an overall objective for the disclosures to assist entities in compiling disclosures that are useful to users without being overly burdensome to prepare.
09/19/2018
Focus on Revenue Recognition: Transition Methods & Practical Expedients
The new standard allows for two methods of adoption: full retrospective and modified retrospective. In the full retrospective method, the transition date is the first day of the first comparative period presented in the financial statements for the year of adoption. When using the full retrospective method, entities have a number of practical expedients available to reduce the complexity of implementation.
09/12/2018
New Revenue Recognition Standard is Effective Soon. Have You Started Your Implementation?
The new revenue recognition standard is effective for all private companies for their years beginning after December 15, 2018.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 This means that companies need to review their revenue recognition process and analyze the effect of the new standard for all contracts that are in process at their upcoming year ends. The effect of any differences between your current revenue recognition methods and the new methods will be the adjustment required to your financial statements.
The new standard has five steps.
1. Identify the contract with a customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) the entity satisfies a performance obligation
As you can see, the terminology is different from the percentage of completion method that most construction firms are using today.
Some of the significant differences you’ll see as you begin your implementation is the accounting for variable consideration and uninstalled materials. Variable consideration includes items such as early completion incentives and liquidated damages. You’ll need to consider the probability of receiving or paying these amounts when determining the initial contract price. Uninstalled materials under the new standard include all materials not installed versus only non-unique materials under the existing standard.
If you haven’t already started analyzing your operations to determine what, if any, changes will be needed, RubinBrown encourages you to start now.
Back To Top
09/12/2018
Focus On Revenue Recognition: Additional Considerations
From time to time, the price and scope of a contract is changed. The new standard gives guidance on how to evaluate contract modifications to determine if they should be accounted for as a new contract or as a change to the existing contract.
09/06/2018
RubinBrown Hires Real Estate Manager in Nashville Office
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently hired Peter DiPietro, CPA, as a
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 manager in the Real Estate Services and Tax Services groups.
09/05/2018
Focus On Revenue Recognition: Step 5
Now that the performance obligations have been identified and the transaction price has been allocated between them, Step 5 determines when revenue is recognized. The standard’s fundamental principal is that revenue is to be recognized as performance obligations are satisfied by the entity’s transfer of the promised goods or services to the customer.
09/05/2018
RubinBrown Hires New Manager in its State & Local Tax Services Group
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently hired Kara Hernandez, JD, LL.M, as a manager in the State and Local Tax Services (SALT) Group for its Kansas City office.
09/04/2018
Focus on Public Sector: SEC Adds Two New Continuing Disclosure Requirements
On August 20, 2018, the Securities and Exchange Commission (SEC) adopted amendments to SEC Rule 15c2-12, which identify two new events requiring disclosure with the Municipal Securities Rulemaking Board (MSRB) via the EMMA system within 10 business days of their occurrence.
09/03/2018
FASB Issues Codification Improvements
The FASB recently issued ASU 2018-09, Codification Improvements as part of its project to make incremental improvements to GAAP and to correct unintended application of existing guidance.
09/03/2018
FASB Issues Codification Improvements Related to Leases
As part of its ongoing efforts to clarify the Accounting Standards Codification and address unintended application of previously issued guidance, the FASB recently issued ASU 2018-10, Codification Improvements to Topic 842, Leases.
09/03/2018
FASB Issues Targeted Improvements to Leases Standard
The FASB has issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. The ASU is intended to reduce costs and ease implementation of the new lease standard with two specific changes.
08/30/2018
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Not-For-Profits: New IRS Proposed Regulations Could Affect Charitable Contribution Deductions and State Tax Credits
The Internal Revenue Service (IRS) issued proposed regulations on August 23, 2018 that could affect charitable contribution deductions that individual taxpayers are able to claim as itemized deductions for income tax purposes.
08/30/2018
RubinBrown Hires New Manager in Entrepreneurial Services Group
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently hired Rick Hull, CPA, as a manager in the Entrepreneurial Services Group.
08/27/2018
Focus on Cyber Security: Changing Technology and the Role of CPA Firms
With the rapid pace that technology evolves, understanding how those changes can impact business is important.
08/27/2018
Focus on Cyber Security: Takeaways from the 2018 DefCon Hacking Conference
This year marked the 26th annual DefCon, the annual hacker conference attended by thousands of people ranging from high school students to well-known security researchers and infamous personalities in the industry.
08/22/2018
Focus on Entrepreneurial Services: Your Financials Are Talking – Are You Listening? Part 2
Accountants quickly learn that business owners have secrets. One of the most common and surprising secrets is that many owners don’t read their own financial statements.
08/22/2018
RubinBrown Welcomes Tim Anderson as Real Estate Partner
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently hired Tim Anderson, CPA as a partner in the Real Estate Services and Tax Services groups.
08/21/2018
Sean McKessy Joins RubinBrown’s Real Estate Practice as Partner
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently hired Sean McKessy, MBA, as a partner in the Real Estate Services and Assurance Services groups.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 08/15/2018
Focus on Entrepreneurial Services: Your Financials Are Talking – Are You Listening? Part 1
To some business owners, it may seem as if financial statements are written in a foreign language. But, the consequences of misunderstanding what financial statements are saying can be dire. Business owners must “listen” closely to hear what the numbers are saying. Following are a few tips to help with the translation.
08/10/2018
Focus on Taxation: Guidance Issued for the Pass-Through Entity Deduction – Section 199A
On August 9, 2018 the IRS released guidance on new Code Section 199A, commonly referred to as the “pass-through entity deduction”. Code Section 199A allows business owners to deduct up to 20% of their qualified business income (QBI) from partnerships, S corporations, trusts and sole proprietorships.
08/02/2018
Construction Spending On The Rise
Construction spending totaled $648.8 billion in the second half of 2017, which is a 12 percent increase from the first half of 2017 and a 2 percent increase from the second half of 2016.
Overall, since the first quarter of 2012 through 2017, construction spending has steadily increased.
The American Institute of Architects (AIA) is estimating 4% growth for non-residential construction spending in both 2018 and 2019.
The AIA’s forecast cited natural disasters, tax reform, infrastructure focused legislature, and business confidence levels as reasons for growth in the engineering and construction (E&C) arena.
Additionally, employment can be a strong indicator of industry health. Per the 2018 Associated General Contractors of America (AGC) 2018 Construction Outlook National Survey, 26% of construction firms surveyed expect to increase employee count by 11 to 25%.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134
Back To Top
08/02/2018
RubinBrown’s Assurance Group Welcomes Michael Goot to Chicago
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently hired Michael Goot, CPA, as a manager in the Assurance Services Group.
08/01/2018
Daniel Vukosa Joins RubinBrown as Tax Manager in Denver Office
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently hired Daniel Vukosa, CPA, as a manager in the Tax Services Group.
08/01/2018
FASB Clarifies and Improves Guidance for Not-For-Profit Grant and Contribution Accounting
The FASB recently issued ASU 2018-08, Not-For-Profit Entities: Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made (Topic 958). This ASU is intended to address the diversity in practice that currently exists among not-for-profits regarding the characterization of grants and contributions as either exchange transactions or non-exchange transactions.
08/01/2018
FASB Issues Simplifications to Accounting for Nonemployee Share-Based Payments
The FASB has issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting. Under the new guidance, the measurement and classification of nonemployee awards is generally aligned with the existing guidance for awards to employees.
08/01/2018
FASB Proposes Update to Definition of Collections
The FASB has issued an Exposure Draft that would update the definition of the term, “collection” within the Master Glossary of the Accounting Standards Codification so that it is consistent with the definition used in the American Alliance of Museums Code of Ethics for Museums.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 08/01/2018
GASB Establishes New Guidance on Capitalization of Interest Cost
The GASB has issued Statement No. 89 titled Accounting for Interest Cost Incurred before the End of a Construction Period. This statement is designed to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period. It also simplifies accounting for interest cost incurred before the end of a construction period.
08/01/2018
GASB Issues Implementation Guidance
The GASB recently issued GASB Implementation Guide No. 2018-1, Implementation Guidance Update – 2018. The GASB periodically issues implementation guidance to assist practitioners in implementing GASB Statements and to answer frequently asked questions.
07/30/2018
Increased Number of M&A Activity Through 2018
More than 20% of all M&A activity in the engineering and construction industry in 2017 had a public company buyer, which is the highest level since 2011. The activity has continued into 2018 with Granite Construction and Layne Christensen Company announcing a $565 million M&A deal.
Given the world’s growing population and aging roads and bridges, the need for construction firms with a focus on infrastructure continues to grow. Reports indicate that, “the world will need to spend $94 trillion on infrastructure by 2040 to meet demand.” Based on this forecasted demand, M&A activity should continue to increase in the infrastructure niche.
GCs have not historically been attractive acquisition targets in the M&A environment. However, as GCs are looking to diversify their revenue streams and integrate business lines, the acquisition of a specialty contractor could make sense.
RubinBrown is seeing more of this throughout the country, which is helping GC’s increase margins by self-performing certain work while diversifying their revenue stream.
Back To Top
07/27/2018
Focus on Not-For-Profits: Changes to Missouri Tax Credits Available to Donors of Certain Not-for-Profit Organizations
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 In recent weeks, Missouri Governor Mike Parson signed a number of bills into law, including one that will modify certain existing tax credits and create new tax credits to encourage donations to certain social service organizations.
07/24/2018
Focus on Not-For-Profit and Colleges & Universities: Update on New Tax Law - Taxation of Certain Fringe Benefits
The Tax Cuts and Jobs Act (the Act), enacted in late 2017, was the most significant change in the tax law in over 30 years. Several provisions of the Act could have a direct or an indirect impact on not-for-profit/tax-exempt entities (exempt organizations).
07/10/2018
RubinBrown Hires New Manager in Tax Services Group
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently hired Teri Garrett, CPA, as a manager in the Tax Services Group.
07/10/2018
RubinBrown’s Nashville Office Welcomes New Tax Manager
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently hired Kyle Bumpous, CPA, as a manager in the Tax Services Group for its Nashville, TN office.
07/09/2018
Recruiting And Talent Retention In The Construction Industry
With the experienced worker shortage alive and well in the construction industry, recruiting and talent retention feels more important than ever! RubinBrown has identified a few strategies that construction firms should consider when it comes to improving talent retention and team member development.
Ownership
You may have heard the saying “think like an owner,” which is important, but to take it a little further, we’re suggesting that you build your team with team members that take ownership of work assigned to them.
Team members that take ownership of projects or jobs assigned to them and who stick with the project until completion are a joy to work with and good role models to have within your organization.
Communication
Surprises late in a project are rarely good, so your team members must communicate engagement status often to avoid surprises. Encourage your team to think at the end of every day, “What did I do today and who needs to know about it” and then send out status updates accordingly.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Service Oriented
We’re all in the business of serving others. Someone that has a service-oriented mindset is much more likely to be a good representative of your firm and keep your clients happy!
Back To Top
07/02/2018
The Importance of Mentoring
The goal of mentoring is to transfer as much knowledge from your experienced team members to your new team members. Competition is alive and well in the construction industry, so this is easier said than done.
Oftentimes the experienced team members might be threatened by newer team members and not want to share tips or information that will help the younger team members be successful. This attitude is not healthy in your organization and must be addressed when encountered.
A mentoring program should be structured with experienced team members mentoring new team members. Informal mentoring meetings should occur as often as necessary, but a formal meeting should occur at least twice a year.
The formal meetings should be documented with mentoring notes or an evaluation summary. These mentoring notes can be used to follow up on areas identified for improvement.
Back To Top
06/29/2018
RubinBrown Welcomes New Wealth Advisory Partner
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently hired John Russo, CFA, CPA, CAIA, as a wealth advisory partner.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 06/28/2018
RubinBrown Announces Manager Promotions in its Denver Office
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently promoted Max Haberkorn, CPA, and Andrew Sexton, CPA, to manager.
06/27/2018
RubinBrown Announces Manager Promotions in Kansas City Office
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently announced five manager promotions for team members in its Kansas City office.
06/26/2018
Fraud In the Construction Industry
Here’s a statistic that will keep you up at night…a typical case of fraud within the construction industry has a median loss of $245,000.
The threat of fraud can never be wholly removed; however, companies should take steps to identify likely fraud schemes they might face. Below are a number of schemes frequently used to defraud construction companies.
Billing Schemes
Reports indicate that billing schemes account for 35% of the fraudulent activity within construction companies.
The schemes can be payments to fictitious vendors, overpayment to vendors (often through collusion with an internal employee) and purchase of personal items with company funds.
Theft
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The construction industry is particularly susceptible to theft of materials due to the location of jobs and the difficulty of tracking construction materials. Job sites can be in remote areas or some distance from the corporate headquarters and subject to less supervision.
Additionally, materials on job sites are hard to track and measure during the construction process. Items lying around a job site like lumber, concrete, copper pipe, wire and cable can create an opportunity for thieves if proper controls are not in place.
Misuse of Company Equipment
Similar to theft of materials, misuse of company equipment can also become an issue if there is a lack of controls present. For instance, an employee could operate a side business using a company’s idle equipment.
Bid Rigging & Corruption
Contractors are subject to the risk of bid rigging and other forms of corruption. In the ACFE study nearly 47% of the fraud cases examined in the construction industry had an element of corruption.
Whether it was bribery, kickbacks or quid pro quo situations, the bid process can be riddled with opportunity for this type of fraud.
Other Fraud
The construction industry is subject to the same fraudulent activities faced by every other industry. These include payroll fraud through fictitious employees, check tampering and fraudulent expense reports.
Back To Top
06/26/2018
Focus on State & Local Taxation: U.S. Supreme Court Overrules Physical Presence Standard
In the 5-4 decision of South Dakota v. Wayfair, Inc., the Supreme Court of the United States ruled South Dakota’s economic nexus law constitutional. The decision has the potential to require online retailers and other remote sellers to collect and remit sales tax to states in which they do business, regardless of their physical presence within those states.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 06/26/2018
Stephanie Drew Named Partner in RubinBrown’s Denver Office
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently promoted Stephanie J. Drew, CPA/CFF, MST, CFE, to partner in the Business Advisory Services Group.
06/22/2018
RubinBrown Announces Manager Promotions in its Business Advisory Services Group
RubinBrown, one of nation’s top 50 accounting and business consulting firms, recently promoted Jonathan Ahrens, CPA, CIA, John Drury, CPA, and David Schomer, CFA, CPA, to manager positions within the Business Advisory Services Group.
06/19/2018
The Importance of Internal Controls
To help prevent fraud in your construction company, RubinBrown recommends that you design a control structure that will reduce the opportunity for fraud and increase the chances fraud will be detected. Although there are no guarantees related to fraud, the foundation to a strong internal control environment is proper segregation of duties.
Here are some other simple yet effective internal controls you can implement with relative ease:
Check all estimates for accuracy of calculations, labor rates and correspondence with drawings. Compare job cost estimates with actual costs. Require approvals for cost adjustments or transfers of costs between jobs. Require that materials estimates above a specified amount include quotes from two or more vendors. Make purchases only with pre-numbered purchase orders, and match them to both receiving reports and invoices before payment is made. Check vendor invoices against estimates to ensure proper discounts and pricing. Always refer to specific job numbers, phase codes or work order numbers in onsite communications. Obtain ink or electronic signatures on change orders before work begins, and revise contract values accordingly. Allocate equipment usage to contracts weekly and record equipment maintenance expense in the ledger as they occur. Review all billings for timeliness, accuracy, conformity with contract terms and correct customer information. Reconcile contract billings with general ledgers monthly, and calculate underbillings and overbillings. Prepare and review financial statements monthly and reconcile them to supporting ledgers, bank statements and loan schedules. Per the ACFE report, management’s review of financial data took place in 62% of the cases examined and caught the fraud 16% of the time. The average loss detected by management’s review was $125,000 and lasted 18 months.
Back To Top
06/19/2018
RubinBrown Announces Manager Promotions in its Assurance Services Group
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 RubinBrown, one of nation’s top 50 accounting and business consulting firms, recently promoted Emily Buckley, CPA, Chris Gilbert, CPA, Hillary Ravellette, CPA, Lisa Sanford, CPA, Jimmy Young, CPA, CFE, and Sam Zeller, CPA, to manager positions within the Assurance Services Group.
06/14/2018
Jeff Albach and Ethan Kent Named Partner in RubinBrown’s Las Vegas Office
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently promoted Jeff Albach, CPA, CFE, and Ethan Kent, CPA, to partner in the Assurance Services Group
06/13/2018
RubinBrown Announces Partner Promotions in its Tax Consulting Group
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently promoted Tim Kendrick, CPA, and Jason Stalberger, CPA, to partner in the Tax Consulting Services Group.
06/12/2018
Succession Planning: Part One
People do not want to talk about their incapacitation, retirement, or death. To talk about your successor means you have to relinquish control, plan for a sale of a business that you have overseen, and inherently trust another with one of your most valuable assets.
Strong management succession will increase the business’ value, in addition to providing other benefits.
Building Value
Building value in your construction company is important. In most other areas of the business there are formal processes and plans that are followed to reduce cost and uncertainties and build value.
The first step of the process is to identify key decision-makers and succession planning goals and objectives. Gather information such as:
Who are the current owners? What top management will be involved in the planning? Who are the outside advisors that should be consulted? What is the transition timeline?
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 What do you want your legacy and the company’s legacy to be?
Management may have expectations of future ownership or different roles within the company. Will continuity among advisors provide stability during the transition process or is it time to seek other counsel that aligns with the vision of the new ownership group? These questions are not easily answered. Nor is there a common right answer for these questions.
Every organization and succession plan just like every set of blueprints is different and should be handled accordingly.
Communicating Objectives
The next step of communicating the objectives with key members of the organization is vital.
Will management be on board with the goals of the succession plan? Are the family members on board with changes of control among generations?
A misstep in communication could cause costly disruptions such as power struggles between key employees or family members and stress for external players, including suppliers, customers, lenders and advisors.
If the succession plan contemplates transfer to a third party buyer, how do you keep key stakeholders incentivized throughout the transition?
Back To Top
06/12/2018
RubinBrown Announces Partner Promotions in its Assurance Services Group
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, recently promoted Renita Duncan, CPA, Becky Knezevich, CPA, Mark Ommen, CPA, and Andrew Schmitt, CPA, to partner positions within the Assurance Services Group.
06/11/2018
Focus on Cyber Security: GDPR – A Common Sense Approach
The General Data Protection Regulation (GDPR) went into effect on May 25, 2018. With fines as high as €20 million or 4% of global revenues, the GDPR cannot be ignored. How do you know if the regulation applies to your organization and how can you comply?
06/05/2018
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Succession Planning: Part Two
Previously, RubinBrown's Construction Services shared the important steps a construction company should take to begin a succession plan for their company. After building value and communicating objectives to your fellow leaders, you are ready for the next steps in the process.
Groom A Successor Once the goals have been discussed and agreed upon, choosing and grooming a successor follows.
This is an important piece of the succession plan because it is the successor who is able to utilize the owner’s intangible assets. The owner has knowledge, skills, and relationships that other employees may not possess.
When evaluating successors, it is essential to identify and quantify the right qualities for each position. Both hard and soft skills should be evaluated, as well as behavior.
A successor’s behavior, such as natural leadership and ability to work with others, plays an important role in selecting a successor. Another important quality is the successor’s desire.
Attaining ambition comes from giving them adequate training and development, necessary leadership experience and quality mentorship.
Transfer Ownership The next and most complex step is to decide how to transfer ownership. Contributing to the complexity is the multitude of ways ownership can be transferred.
Gifting stock is an effective way of passing stock to successor individuals and in turn, reducing the estate of the original stock owner. And while gifting stock can seem self-explanatory, many considerations need to be taken into account. These considerations include the annual gift exclusion, future appreciation of the stock, and voting versus non-voting stock.
An alternative to gifting is a stock redemption. To qualify for a Section 303 stock redemption, the deceased must have corporate stock that makes up 35% or more of their adjusted gross estate.
Therefore, this is a good option for families where a corporation constitutes the majority of the family’s wealth. Under this code section, a corporation may redeem its stock from the estate on a tax-favored basis in an amount equal to the decedent’s estate taxes and administrative expenses. In many instances, the redemption may be part of a buy/sell agreement.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134
Buy/sell agreements are also an effective method to transfer ownership. With a buy/sell agreement, the price of the stock is based on a predetermined valuation.
An ESOP is another succession planning opportunity that requires annual valuations. An employee stock ownership plan, or ESOP, allows owners to sell up to 100% of their stock to a defined benefit plan that is owned by its own employees. Therefore, the employees of the business become shareholders in the company.
Another choice is stock recapitalization. Both common and preferred stock can be recapitalized, but the benefits of each vary. Common stock recapitalization enables a shift in voting power to successors that will operate the company.
Preferred stock recapitalization can shift future increases in corporate value to those who own common stock and freeze the value of the estate of a principal stockholder, so the subsequent increases in value go to the common stock held by their heirs. As you can see, this option provides a lot of flexibility for estate planning.
Estate Planning Estate planning is the last step in the process. However, this step should be considered throughout the planning process. Make sure you can clearly answer the following questions:
What do I want to leave to my family? Do I have the financial capacity to retire? What are the tax consequences of my succession plan and beyond?
Back To Top
06/01/2018
FASB Proposes Guidance For Collaborative Arrangements
The FASB has issued an Exposure Draft for public comment that is intended to address certain questions that have arisen regarding the interaction of Topic 606 – Revenue for Contracts with Customers and Topic 808 – Collaborative Arrangements.
06/01/2018
FASB Updates Topic 942
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The FASB has issued ASU 2018-06,Codification Improvements to Topic 942, Financial Services—Depository and Lending.
05/22/2018
Focus on Revenue Recognition: Step 4
The objective of Step 4 is to allocate the transaction price identified in Step 3 to the performance obligations identified in Step 2. Step 4 is not applicable to contracts with a single performance obligation. The standard calls for the allocation to reflect the amount of consideration that the entity expects to be entitled in exchange for transferring the promised goods and services.
05/01/2018
FASB Amends Codification Pursuant To SAB 118
The FASB has issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SAB 118). This new literature amends the codification to reflect specific guidance in SAB 118 related to income tax accounting implications associated with the Tax Cuts and Jobs Act.
05/01/2018
GASB Establishes New Guidance On Debt Disclosures Including Those Addressing Direct Borrowings And Direct Placements
The GASB has issued GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The objective of the Statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements.
04/24/2018
Focus on Revenue Recognition: Step 2 – Additional Considerations
In the previous article, we provided an overview of the key considerations in identifying performance obligations. Some of the components of this step require significant judgement and have posed some challenges during implementation. This article will highlight some of these areas.
04/24/2018
Focus on Revenue Recognition: Step 3
The new standard defines transaction price as “the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, some sales taxes).
04/23/2018
Focus on Revenue Recognition: Step 2
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Once you have identified an in-scope contract, you are ready to identify the performance obligations in the contract. Most contracts explicitly state the promised goods and/or services to be transferred to the customer.
04/02/2018
FASB Issues Corrections to Financial Instruments Guidance Resulting From ASU 2016-01
The FASB has issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Topic 825- 10): Recognition and Measurement of Financial Assets and Financial Liabilities. The purpose of the standard is to correct unintended application of guidance as it relates to ASU 2016-01, which covers the recognition and measurement of financial assets and liabilities.
04/02/2018
FASB Proposes Improvements to Accounting for Costs of Implementation Activities Performed in Certain Cloud Computing Arrangements
The FASB has issued an Exposure Draft of proposed amendments to Subtopic 350-40 titled Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.
04/02/2018
FASB Proposes Update to List of Permissible U.S. Benchmark Interest Rates for Hedge Accounting
The FASB has issued an Exposure Draft that would expand the list of U.S. benchmark interest rates permitted in the application of hedge accounting.
04/02/2018
FASB Revises SEC Guidance Within Codification
The FASB has issued ASU 2018-04, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273. The purpose of the ASU is to align SEC guidance in the codification with the revised provisions for the accounting for other-than-temporary impairment set forth in ASU 2016-01 – Recognition and Measurement of Financial Assets and Financial Liabilities.
03/26/2018
RubinBrown Hires Partner in Kansas City Office
RubinBrown LLP, one of the nation’s top 50 accounting and business consulting firms, recently hired Andrea Turner, CPA, as a tax partner.
03/15/2018
RubinBrown Hires Managers in St. Louis Office
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 RubinBrown LLP, one of the nation’s top 50 accounting and business consulting firms, recently hired two tax managers.
03/15/2018
RubinBrown Hires Partner in Denver Office
RubinBrown LLP, one of the nation’s top 50 accounting and business consulting firms, recently hired Beth Womersley, CPA, CRMA, as a partner in its Business Advisory Services Group.
03/15/2018
RubinBrown Hires Two Managers in Las Vegas Office
RubinBrown LLP, one of the nation’s top 50 accounting and business consulting firms, recently hired two managers in its Las Vegas Office.
03/09/2018
Focus on Cyber Security: W-2 Scams are on the Rise
Tax season is in full swing and cyber criminals are actively phishing for W-2s. Cyber criminals want easy targets with large amounts of data, so they are sending out emails asking for your W-2s. Social Security Numbers, income amounts and other private information can be used to file false tax returns, steal identities or be sold on the dark web by these criminals.
03/01/2018
FASB Issues Improvements To Income Tax Accounting Related To The Tax Cuts And Jobs Act
The FASB has issued ASU 2018-02 to address certain stranded income tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act of 2017 (the Act).
03/01/2018
FASB Simplifies Adoption Of New Leases Standard For Some Land Easements
The FASB has issued ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, which is intended to clarify the application of the new leases guidance to land easements.
03/01/2018
GASB Requests Public Input On Revenue And Expense Recognition
The GASB has released an Invitation to Comment seeking input on the development of a comprehensive revenue and expense recognition model for state and local governments.
02/21/2018
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Cyber Security: Web Application Security – Secure Your Web Application From Cyber Criminals
Web application vulnerabilities are a top target for cyber criminals. Websites, applications, servers and supporting infrastructure are exposed to the internet via web applications and thus are under constant attack. Many organizations perform network vulnerability scans on internet facing networks and systems, but often ignore web applications. The tests included in the network vulnerability scans generally do not test web applications and certainly do not perform deep vulnerability testing inside the application.
02/21/2018
Focus on Revenue Recognition: Step 1
First, consider whether the contract is with a customer. A customer is defined as “a party that has contracted with an entity to obtain goods or services that are an output of the entity’s ordinary activities in exchange for consideration.”
02/15/2018
Focus on State and Local Taxation: Sales Tax Nexus Standards
On January 12, 2018, the Supreme Court of the United States granted a petition for certiorari in the case of South Dakota v. Wayfair, Inc., a case to determine the constitutionality of a South Dakota statute obligating businesses with no physical presence in the state to collect and remit sales tax.
02/13/2018
Focus on Taxation: Bipartisan Budget Act of 2018 - Additional Tax Extenders
The following is a listing to the tax provisions extended by the Act through 2017 (unless otherwise noted).
02/13/2018
Focus on Taxation: Bipartisan Budget Act of 2018 - Tax Extenders
On February 9, President Trump signed the Bipartisan Budget Act of 2018 into law. The Act contains an extension of over 30 otherwise expired tax breaks. The following is a listing to the tax provisions extended by the Act through 2017 (unless otherwise noted).
02/07/2018
Focus on Revenue Recognition: Getting Started
The implementation of the new standard is expected to be a significant undertaking for most entities. Even if you do not expect a significant change in the accounting for revenue, the comprehensive nature of the change will require companies to look at their revenue with a clean sheet of paper approach, assessing each of the five steps for all significant revenue streams.
02/01/2018
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 FASB Proposes Improvements To Lease Standard Implementation
The FASB has issued an Exposure Draft titled, Leases (Topic 842) Targeted Improvements. The proposed amendments are intended to reduce costs and ease implementation of the new Leases standard for financial statement preparers.
02/01/2018
GASB Issues Exposure Draft On Capitalization Of Interest Cost
The GASB has issued an Exposure Draft of a proposed statement titled Accounting for Interest Cost during the Period of Construction. This proposed statement is designed to simplify the accounting for interest costs associated with capital projects and to enhance the comparability between capital assets.
02/01/2018
GASB Issues Implementation Guidance Related To Postemployment Benefits
The GASB has issued Implementation Guide No. 2017-3, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting).
02/01/2018
GASB Issues Implementation Guidance Related To Postemployment Benefits
The GASB has issued Implementation Guide No. 2017-3, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting).
01/31/2018
Focus on Cyber Security: Penetration Testing – Why pay someone to try and break into your network?
RubinBrown Cyber Security Center of Excellence – Security You Need to Know. Testing your cyber security on a regular basis is part of sound strategy to identify and eliminate risks in the environment. Penetration testing, or "white hat" hacking, tests the external and internal network to assess the effectiveness of controls. Whether you are demonstrating due care in addressing cyber security threats or addressing compliance requirements, penetration testing is a core component of regular security assessment efforts.
01/24/2018
Focus on State and Local Taxation: Colorado Use Tax Reporting Requirements
On July 1, 2017, the Colorado Department of Revenue began enforcing new use tax notice and reporting requirements relating to retailers that make sales into Colorado but do not collect state sales tax (non-collecting retailers).
01/19/2018
RubinBrown Manager Molly Osadjan-Rudolf Named Top 25 Young Professional
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Molly Osadjan-Rudolf, strategic client development manager at RubinBrown, was recently named one of ColoradoBiz magazine’s Top 25 Young Professionals for her professional achievement, community involvement and personal story.
01/16/2018
RubinBrown Combines with Goltermann & Associates to Grow Entrepreneurial Services and Wealth Advisory Practice
RubinBrown LLP, the nation’s 46th largest accounting and business consulting firm, is joining together with St. Louis-based Goltermann & Associations, P.C. effective January 1, 2018. This combination will allow RubinBrown to grow its specialization in both entrepreneurial and wealth advisory services, integrating partners Greg and Joe Goltermann and their team into RubinBrown’s Clayton office.
01/15/2018
Focus on Construction: News from the National Association of Home Builders 2018 International Builders Show
RubinBrown recently attended the National Association of Home Builders (NAHB) International Builders Show in Orlando, Florida. As in prior years, the show is combined with the Kitchen and Bath Industry, International Window Coverings and International Surface Event Shows bringing the overall attendance to nearly 89,000.
01/11/2018
Focus on Public Sector: Highlights from the Tax Cuts and Jobs Act
The Tax Cuts and Jobs Act (the Act) was signed by President Trump on December 22, 2017. The following are highlights that have some implications for state and local governments. As with past tax acts, there are likely to be “technical corrections” passed in future legislation. While technical corrections are often minor, occasionally the changes are material.
01/08/2018
Focus on Cyber Security: New Standards for Healthcare Companies Under the General Data Protection Regulation
The General Data Protection Regulation (GDPR) was adopted in April, 2016 by the European Parliament and Council of the European Union to further protect the personal data of all European Union (EU) residents. The increased regulations will have far reaching effects on all organizations either doing business within or offering goods or services to EU residents.
01/04/2018
Focus on Private Equity: The Tax Cuts and Jobs Act
The Tax Cuts and Jobs Act (the Act) is the first major re-write of the Internal Revenue Code since 1986. In regards to its effect on private equity investors and their portfolio companies, the Act contains several significant changes. The new rules are generally effective for tax years beginning after December 31, 2017.
01/04/2018
Focus on Taxation: Comprehensive Overview of the Tax Cuts and Jobs Act (H.R. 1)
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 RubinBrown is proud to provide a comprehensive overview of the Tax Cuts and Jobs Act (H.R. 1) that was signed into law on December 22, 2017. Read detailed information about the sweeping changes as well as the impact on individuals and businesses.
01/02/2018
Focus on Taxation: Meals, Entertainment and Transportation Fringe Benefits May No Longer Be Deductible – May Require Immediate Action
Under tax law applicable for expenditures before January 1, 2018, generally meal and entertainment expenses were 50% deductible. With changes made with the recent legislation (H.R. 1) entertainment expenses are 100% NOT deductible for amounts paid or incurred after December 31, 2017.
01/01/2018
FASB Codifies Certain SEC Guidance Relating To Revenue Recognition
The FASB has issued ASU 2017-14, Income Statement – Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606) – Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin (SAB) No. 116 and SEC Release No. 33-10403.
01/01/2018
FASB Eliminates Topic 995 Related To Steamship Entities
The FASB has issued ASU 2017-15 to supersede Topic 995, U.S. Steamship Entities, because its guidance is no longer relevant.
01/01/2018
GASB Issues Exposure Draft On Accounting And Financial Reporting For Majority Equity Interests
The GASB has issued an Exposure Draft entitled Accounting and Financial Reporting for Majority Equity Interests.
01/01/2018
GASB Proposes Additional Implementation Guidance
The GASB has issued an Exposure Draft entitled GASB Implementation Guide No. 201Y-X, Implementation Guidance Update – 201Y.
12/27/2017
Focus on Manufacturing & Distribution: The Tax Cuts and Jobs Act
The Tax Cuts and Jobs Act (the Act) was signed by President Trump on December 22, 2017. The following are highlights that are
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 pertinent to manufacturing and distribution companies and owners. As with past tax acts, there are likely to be “technical corrections” passed in future legislation. While technical corrections are often minor, occasionally the changes are material.
12/22/2017
Focus on Construction: The Tax Cuts and Jobs Act – Construction and Home Building Highlights
The Tax Cuts and Jobs Act (the Act) was signed by President Trump on December 22, 2017. The changes in the Act will affect organizations in a variety of ways. The following highlights are pertinent to construction or home building companies and owners.
12/21/2017
Focus on Not-For-Profit Organizations and Colleges & Universities: Tax Cuts and Jobs Act – Highlights from an Exempt Organization View
As this summary is being written, the Tax Cuts and Jobs Act (the Act) is approaching passage by Congress and signature by the President. The changes in the Act will affect organizations in a variety of ways. The following highlights are based on the drafts of the bill and of the conference report.
12/21/2017
Focus on Taxation: Tax Reform Update – International Taxes
The Tax Cuts and Jobs Act (the Act) is our first major re-write of the Internal Revenue Code since 1986. In regards to U.S. international tax law, the Act contains significant changes to how US based multinational corporations are taxed.
12/19/2017
Focus on Taxation: Tax Reform Update – Businesses & Individuals
An agreement has been reached on a tax reform bill that is expected to go before the House and Senate for a final vote this week. The President is anticipating signing it into law before Christmas. The following is a summary of the key changes proposed.
12/11/2017
Focus on Entrepreneurial Services: Year-End Tips for Entrepreneurs
If you dread year-end paperwork and tax time, you’re not alone. Most entrepreneurs would rather pursue their ideas and passions than spend time and energy on the financial details. Here are a few suggestions to make your year-end close a valuable process rather than a necessary evil.
12/06/2017
Focus on State and Local Tax: Colorado EZ Credits Pre-Certifications
Every year, businesses may claim any of the Colorado Enterprise Zone (EZ) income tax credits; however, they must annually pre- certify with their local EZ Administrator in order to be eligible to claim these credits. Any qualifying activity/purchase taking place before pre-certifying will not qualify for the credit.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 12/04/2017
Focus on Taxation: Tax Reform Update – Businesses and Individuals
The House and Senate have both passed separate tax reform bills. These bills will now head into the reconciliation process for potential passage of a single bill that would be ready for the President’s signature by the end of the year.
11/27/2017
RubinBrown Expands To Chicago To Grow National Real Estate Practice
RubinBrown LLP, the nation’s 46th largest accounting and business consulting firm, is joining together with Chicago-based FLS Group, LLC effective December 1, 2017.
11/17/2017
RubinBrown Manager, Hannah Castellano, Receives Women to Watch Award
Hannah Castellano, CPA, a manager in RubinBrown’s Wealth Advisory Services Group, was honored with the 2017 Missouri Society of Certified Public Accountants (MOCPA) Women to Watch – Emerging Leader Award for her professional achievements and leadership efforts. She was recognized at the MOCPA Awards Celebration on November 16 held at River City Casino.
11/16/2017
Construction of New Multifamily Units Reaches 20-Year High
According to the recently released 2017 Apartment Statistical Analysis report from RubinBrown, the multifamily housing industry continued to experience significant growth in 2016. With 321,000 multifamily units completed, this marks the highest level of completed construction in 20 years.
11/08/2017
RubinBrown CPA, Kendrick Coleman, Honored with Leadership Award
Kendrick Coleman, CPA, a staff accountant in the Entrepreneurial Services Group at RubinBrown, was recently honored with the Southern Illinois University (SIU) Emerging Saluki Leader Award (ESLA) at the annual College of Business Homecoming Reception on October 13.
11/01/2017
FASB Issues Exposure Draft On Reorganizing Consolidation Guidance
The FASB has issued an Exposure Draft titled Consolidation (Topic 812): Reorganization. The amendments in this proposal would reorganize and clarify certain items within the consolidation guidance.
11/01/2017
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 FASB Proposes Changes To Recently Issued Standards
The FASB has issued an Exposure Draft, Technical Corrections and Improvements to Recently Issued Standards: I. Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities and II. Accounting Standards Update No. 2016-02, Leases (Topic 842).
11/01/2017
FASB Proposes Clarifications To Codification
In September 2009, the FASB established the FASB Accounting Standards Codification as a source of authoritative GAAP to be applied to nongovernmental entities. Since that time, stakeholders have recommended minor corrections and clarifications to which the FASB responds by continuing to have a standing project on its agenda to address the suggestions received.
11/01/2017
FASB Proposes Clarifications To Land Easements Application Guidance In New Leases Standard
The FASB has issued an Exposure Draft, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, intended to clarify the application of the new leases guidance to land easements.
11/01/2017
FASB Rescinds Certain SEC Staff Observer Comments
The FASB has issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.
10/26/2017
Amazon.com: The Biggest Disruptor of All
Over the last decade, regardless of the products you are selling, the internet has certainly revolutionized how you do business and Amazon is a large part of that.
10/26/2017
Cyber Security Remains a Significant Challenge for Manufacturers & Distributors
Modern manufacturing continues to evolve providing incredible enhancements to current processes, in turn exposing the underlying technology and the organization to additional risks.
10/26/2017
Healthcare’s Biggest Distruptor: Blockchain & EHR Interoperability
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 As patients and regulators press for better care at lower costs, the healthcare system appears to be poised to experience a dramatic digital disruption.
10/26/2017
It’s a Record Period of Growth for the Multi-Family Industry
Each year, RubinBrown publishes an Apartment Statistical Analysis. This data is collected from clients, as well as other contacts and referrals within the industry, to compile averages in a variety of markets within the United States.
10/26/2017
Technology Advances in the Construction Industry
When considering the impact of technology on the modern workplace, construction services is not typically the first industry that comes to mind as being at the forefront of technological advancement.
10/02/2017
FASB Issues Improvements To Hedge Accounting
The FASB recently issued a new ASU aimed at making hedge accounting easier for users of financial statements. ASU 2017-12, Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities, was created primarily to simplify this complex area of accounting and financial reporting.
10/01/2017
Observations On Implementing The New Revenue Recognition Standard
While working on implementation of the new revenue recognition standard (ASC 606), it is common to hear that companies do not believe the new revenue recognition standard will have a significant impact on their financial statements or revenue recognition process. Though this outcome is possible, we have found many instances where this initial assessment over simplifies the complexity that exists within the new standard.
09/29/2017
Focus on Cyber Security: Early Lessons Learned from the Equifax Breach
Powerful reminders about protecting your organization from a data breach. The Equifax breach has all the indicators of being the most costly data breach of our times. Over 143 million individuals affected, international impacts, poorly handled communications and distributing wrong information during the initial days after the announcement.
09/27/2017
Focus on Taxation: Tax Reform Proposal
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 On September 27, President Trump and Republican leaders unveiled a framework for tax reform. The following are the highlights of the changes contained in the proposal for individual and business taxes.
09/19/2017
Focus on State and Local Taxation: Online Marketplace Seller Voluntary Disclosure Program Expires Soon
The Multistate Tax Commission is offering a one-time limited voluntary disclosure program targeted towards online marketplace sellers. Businesses would generally register to file and pay taxes on a prospective basis in exchange for relief from prior year taxes. Applications must be submitted by October 17, 2017 to be considered for participation in the program.
09/13/2017
Focus on Public Sector and Not-For-Profits: 2017 Compliance Supplement
On August 14, 2017, the Office of Management and Budget (OMB) announced the release of the 2017 OMB Compliance Supplement. The compliance supplement contains the policies and procedures required to be followed by federal, state and local entities in regards to expending federal funding and the procedures required to be performed by auditors when conducting the single audit over these federal programs.
09/12/2017
Focus on Taxation: Hurricane & Disaster Tax Relief
A number of RubinBrown clients either live in or have operations in states that have been affected by disasters during this year’s active hurricane season. The IRS recently announced a number of tax relief initiatives for those individuals and businesses which have been affected by Hurricane Harvey and Irma.
09/07/2017
RubinBrown Hires Emily Herr as a Manager in Denver Office
RubinBrown, one of nation’s top 50 accounting and business consulting firms, recently hired Emily Herr, CPA, as a tax manager.
09/05/2017
RubinBrown Hires Jim Peavey as a Manager in Kansas City Office
RubinBrown, one of nation’s top 50 accounting and business consulting firms, recently hired Jim Peavey, CFP, ChFC, as a manager in the Wealth Advisory Services Group.
09/05/2017
RubinBrown Hires Melissa Green as a Manager in Denver Office
RubinBrown, one of nation’s top 50 accounting and business consulting firms, recently hired Melissa Green, CPA, HCCP, as a manager in the Assurance Services Group.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 09/01/2017
FASB Proposes Improvements To Grant And Contribution Accounting
The FASB has issued an Exposure Draft titled, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made (Topic 958).
09/01/2017
FASB Simplifies Accounting For Certain Financial Instruments With Characteristics Of Liabilities And Equity
The FASB has issued ASU 2017-11, I. Accounting for Certain Financial Instruments with Down Round Features II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception.
09/01/2017
GASB Proposes Additional Debt Disclosures
The GASB has issued an Exposure Draft which proposes amendments to GASB Statements No. 34 and No. 38 titled Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The amendments contained in the Exposure Draft would require additional debt disclosures which are designed to better inform stakeholders of the potential effects of debt on a government’s future resource flows.
09/01/2017
GASB Proposes Additional Implementation Guidance For Postemployment Benefits Other Than Pensions
The GASB has issued an Exposure Draft entitled GASB Implementation Guide No. 201X-Z, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting).
08/01/2017
FASB Proposal Would Simplify Consolidation Guidance
The FASB has issued an Exposure Draft intended to reduce the cost and complexity of financial reporting associated with consolidation of variable interest entities (VIEs). The Exposure Draft is based on recommendations from the Private Company Council and would address private company concerns surrounding the difficulty of navigating and applying current VIE guidance to common control arrangements.
08/01/2017
GASB Issues Lease Guidance
The GASB has issued Statement No. 87, Leases, which establishes a single approach to accounting for and reporting leases by state and local governments based on the principle that leases are financings of the right to use an underlying asset such as a building, land, vehicles, and equipment.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 07/25/2017
RubinBrown Announces Leadership Changes
RubinBrown, one of nation’s top 50 accounting and business consulting firms, recently announced key leadership changes in the company. Rick Feldt, CPA, CGMA, was named Partner-in-Charge of the Business Advisory Services Group. Judy Murphy, CPA, CGMA, was named Chair of the Not-for-Profit Services Group, and Amy Altholz, CPA, CGMA, will succeed her as Partner-in- Charge. Jeff Winter, CPA, CGMA, was named Chair of the Public Sector Services Group, and Cheryl Wallace will succeed him as Partner-in-Charge. John Herber, CPA, CGMA, chairman and managing partner, made the announcement.
07/24/2017
RubinBrown Announces Manager Promotions in the Denver Office
RubinBrown, one of nation’s top 50 accounting and business consulting firms, recently promoted Rosie Adams-Grote, CPA, Ashley Granger, CPA, Dave Hendrickson, CISSP, and Samantha Nelson, CPA, to manager. Michael T. Lewis, CFA, managing partner of the Denver office, made the announcement.
07/21/2017
Focus on State and Local Taxation: Colorado Sales and Use Tax Reporting Requirements
Beginning July 1, 2017, new legislation concerning retailers that make sales in Colorado but do not collect state sales tax became effective. The legislation on the issue was passed in 2010, but the requirements were not implemented until July 1, 2017 due to litigation on the matter.
07/21/2017
Focus on State and Local Taxation: Illinois Senate Passes State Budget Package Increasing Tax Revenue
The Illinois Senate overrode the Governor’s veto and passed new legislation, Senate Bill 9, that will increase the income tax rate for individuals and corporations, reinstate the research and development (R&D) tax credit as well as adding a tax addback for IRC 199 and provisions for unitary business groups.
07/21/2017
Focus on State and Local Taxation: New Missouri Sales and Use Tax Filing Requirements
As part of a new integrated tax system, the Missouri Department of Revenue has established new filing requirements for sales and use tax forms that will become effective August 1, 2017. Filers will recognize several formatting changes along with modified codes for identifying business locations.
07/20/2017
RubinBrown Announces Manager Promotions in the St. Louis Office
RubinBrown, one of nation’s top 50 accounting and business consulting firms, recently promoted Jonathan Davis, CPA, CGMA,
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Matt D’Souza, CPA, Fred Grossman, CPA, Samantha Huff-Schlueter, CPA, Nathan Hutson, CPA, and Melinda Weissman, CPA, to manager positions in the St. Louis office. John Herber, CPA, CGMA, chairman and managing partner, made the announcement.
07/18/2017
RubinBrown Hires Micah Wenz as a Manager in Denver Office
RubinBrown, one of nation’s top 50 accounting and business consulting firms, recently hired Micah Wenz, CISA, CISSP, CRISC, as a manager in the Business Advisory Services Group. Michael T. Lewis, CFA, managing partner of the Denver office, made the announcement.
07/17/2017
RubinBrown CPA, Kendrick Coleman, Honored with 30 Under 30 Award
Kendrick Coleman, CPA, a staff accountant in the Entrepreneurial Services Group at RubinBrown, was recently honored at the St. Louis Business Journal’s annual 30 Under 30 awards banquet at .ZACK for his professional achievements and contributions to the St. Louis community.
07/14/2017
Focus on State and Local Taxation: Fewer Hurdles, Faster Benefits for Missouri Works Training Program
Recently passed legislation expands upon the Missouri Works Training Program. Originally enacted in 2013, the program was established to consolidate Missouri’s workforce programs into a single streamlined program.
07/13/2017
RubinBrown Team Member Devenie Ross Receives Elijah Watt Sells Award for Top CPA Exam Score
Devenie Ross, a tax accountant at RubinBrown, was honored with the 2016 Elijah Watt Sells Award from the American Institute of CPAs (AICPA).
07/01/2017
FASB Clarifies Accounting For Service Concession Arrangements
The FASB has issued ASU 2017-10, Service Concession Arrangements (Topic 853). The purpose of the new standard is to reduce diversity in practice related to how an operating entity determines the customer of the operation services for transactions within Topic 853.
07/01/2017
GASB Issues Guidance For Certain Debt Extinguishment Issues
The GASB has issued Statement No. 86, Certain Debt Extinguishment Issues. The objective of the Statement is to improve consistency in accounting and financial reporting for in-substance defeasance of debt by governments.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 07/01/2017
PCAOB Adopts New Standard To Enhance Auditor’s Report
The PCAOB has adopted a new standard to enhance the relevance and usefulness of the auditor's report by providing additional and important information to investors.
06/26/2017
Focus on State and Local Taxation: Pending Legislation on Missouri Delivery Charges
Senate Bill 16 has been sent to the Governor for signature after it was passed through the Missouri House. If signed, this bill will reinstate the sales and use tax exemption of delivery charges which were called into question after the Missouri Supreme Court ruling on Alberici Constructors, Inc. v. Director of Revenue.
06/26/2017
RubinBrown Promotes Paul Rodriguez to Manager
RubinBrown, one of nation’s top 50 accounting and business consulting firms, recently promoted Paul Rodriguez, CPA, to manager in the Assurance Services Group. Todd Pleimann, CPA, CGMA, managing partner of the Kansas City office, made the announcement.
06/22/2017
Focus on Construction: News from the National Association of Home Builders Mid-Year Board Meeting
RubinBrown recently attended the mid-year board meeting of the National Association of Home Builders in Washington, D.C. as a member of the Business Management and Information Technology Committee.
06/22/2017
RubinBrown Promotes Matt Marino and Justin Wenzelman to Partner
RubinBrown, one of nation’s top 50 accounting and business consulting firms, recently promoted Matt Marino, CPA, to partner in the Assurance Services Group, and Justin Wenzelman, CPA, to partner in the Tax Services Group. Michael T. Lewis, CFA, managing partner of the Denver office, made the announcement.
06/22/2017
RubinBrown Promotes Nathan Croll and Kirk Wonio to Partner
RubinBrown, one of nation’s top 50 accounting and business consulting firms, recently promoted Nathan Croll, CPA, CGMA, CCA, to partner in the Business Advisory Services Group, and Kirk Wonio, J.D., CPA, to partner in the Tax Services Group. John Herber, CPA, CGMA, chairman and managing partner, made the announcement.
06/14/2017
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Taxation: Missouri Residents Affected by Severe Storms, Tornadoes, Straight-line Winds and Flooding May Qualify for Tax Relief
Missouri residents affected by the April 28, 2017, severe storms, tornadoes, straight-line winds and flooding may qualify for tax relief from the Internal Revenue Service.
06/12/2017
Focus on State and Local Taxation: Kansas Tax Package Passes with Retroactive Provisions
Recently passed legislation now subjects business owners and owners of rental property to tax in Kansas. During the 2017 legislative session, SB 30 was passed, vetoed by Governor Brownback and quickly overridden by the Kansas Legislature. The bill becomes law July 1, 2017 but several provisions are effective January 1, 2017.
06/06/2017
RubinBrown Launches New Wealth Advisors Website
RubinBrown, one of nation’s top 50 accounting and business consulting firms, recently launched a new platform for its wealth advisory services, www.rubinbrownwealthadvisors.com. The new website curates all of the resources and services the Wealth Advisory Services Group offers in one, easy to navigate site.
06/01/2017
FASB Clarifies Accounting For Modifications Of Stock Compensation
This ASU changes the guidance for determining which modifications to the terms of an existing stock compensation award require the application of modification accounting in Topic 718. The purpose of this ASU is to reduce diversity in practice and the cost and complexity associated with share-based payment awards.
06/01/2017
GASB Issues Implementation Guidance For Various Topics
The GASB has issued Implementation Guide 2017-1, Implementation Guidance Update – 2017 which is designed to provide guidance that clarifies, explains, or elaborates on existing GASB Statements. Based on GASB Statement 76, Implementation Guides are considered Category B in the hierarchy of U.S. generally accepted accounting principles.
06/01/2017
GASB Issues OPEB Implementation Guidance
The GASB has issued Implementation Guide 2017-2, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. This implementation guide constitutes Category B authoritative guidance under GAAP.
05/18/2017
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Cyber Security: Global Ransomware Attack
The WannaCry (aka WannCrypt, WannaCrypt0r 2.0 and Wcry) global ransomware attack raises significant concerns about wide scale attacks from self-propagating ransomware. It appears the initial threat has been stopped by malware researcher MalwareTech. However, the underlying threat is still present and there is consensus copycat (and better designed) attacks are imminent.
05/17/2017
Focus on Healthcare: Proposed American Healthcare Act
On May 4th the House of Representatives passed a bill by a 217 to 213 margin to repeal the Affordable Care Act (ACA) and replace it with The American Health Care Act (AHCA). If enacted in its current form, the new law would eliminate most of the taxes the ACA put in place. The House bill is now in the hands of the Senate where it will likely undergo significant changes.
05/17/2017
Focus on Public Sector, Not-For-Profit and Colleges & Universities: Extension of Grace Period for Uniform Guidance Procurement Rules
On May 17, 2017, the Office of Management and Budget (OMB) published a notice in the Federal Register which provides an additional one-year extension of the grace period permitting recipients of federal funds to delay implementation of the procurement requirements found in the OMB’s Uniform Guidance.
05/10/2017
Focus on Public Sector and Colleges & Universities: Time to Plan for Recently Issued GASB Statements
In early 2017, the Governmental Accounting Standards Board (GASB) issued two new accounting standards in order to clarify how governmental entities report fiduciary activities and to address various miscellaneous accounting issues related to blending component units, goodwill, fair value measurement and postemployment benefits.
05/03/2017
Focus on Cyber Security: A New Cybersecurity Risk Management Reporting Framework
Organizations are under increasing pressure to demonstrate that they are managing cybersecurity threats, and that they have effective processes and controls in place to detect, respond to, mitigate and recover from breaches and other security events.
05/01/2017
FASB Changes Rules For Amortization Of Premium On Purchased Callable Debt Securities
The FASB has issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization of Purchased Callable Debt Securities.
05/01/2017
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 GASB Issues Statement No. 85, Omnibus 2017
The GASB has issued GASB Statement No. 85, Omnibus 2017. The Statement addresses various miscellaneous accounting issues related to blending component units, goodwill, fair value measurement, and postemployment benefits.
04/27/2017
Focus on Taxation: 2017 Tax Reform
On April 26, 2017 the Trump Administration issued an outline on “2017 Tax Reform for Economic Growth and American Jobs” calling it “the biggest individual and business tax cut in American history”.
04/27/2017
RubinBrown Hires Jeri Ann Farley as a Tax Manager
Jeri Ann Farley, CPA, joined RubinBrown as a manager in the Tax Consulting Services Group. Todd Pleimann, CPA, CGMA, managing partner of the Kansas City office, made the announcement.
04/27/2017
RubinBrown Hires Rich Clemons as a Tax Manager
Rich Clemons, CPA, joined RubinBrown as a manager in the Tax Consulting Services Group. Michael T. Lewis, CFA, managing partner of the Denver office, made the announcement.
04/25/2017
Focus on Life Sciences & Technology: 2017 Venture Capital Investment – First Quarter Update
U.S. venture capital (VC) investment rebounded slightly in Q1 2017 after a fourth quarter slide to close out 2016. Q1 2017 deal count rose by nearly 18%, while dollars invested grew by over 15%, versus Q4 2016. Despite the promising first quarter performance, recent venture activity has struggled to return to 2015’s record levels.
04/17/2017
Focus on R&E Tax Credits: Interim Guidance Issued on Using the Research Tax Credit to Offset Payroll Taxes
On March 30, 2017, the IRS released interim guidance explaining how eligible small businesses can take advantage of the Research & Experimentation (R&E or R&D) tax credit by electing to offset their 2017 payroll tax liability instead of their income tax liability.
04/05/2017
Focus on Life Sciences & Technology: Highlights from the 2017 InvestMidwest Venture Capital Forum
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 On March 28 and 29, the InvestMidwest Venture Capital Forum was held in Kansas City, Missouri. The event featured several dozen early stage companies pitching to investors and was a great opportunity to showcase emerging companies in the life sciences, technology and food and ag-tech industries. The 2017 conference highlighted all of the startup and innovation activity occurring throughout the Midwest. RubinBrown attended the event, sitting in on the “Food/Ag/Bioenergy” track.
04/01/2017
FASB Improves Employee Benefit Plan Master Trust Reporting
The FASB has issued ASU 2017-06, Plan Accounting: Defined Benefit Pension Plans (Topic 960); Defined Contribution Pension Plans (Topic 962); Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting to improve the usefulness of the information reported to users of employee benefit plan financial statements and to provide clarity to preparers and auditors.
04/01/2017
FASB Issues Guidance On Derecognition Of Nonfinancial Assets
The FASB recently issued ASU 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20). The ASU is intended to clarify the appropriate application of the standards regarding asset derecognition and to provide guidance regarding partial sales of nonfinancial assets.
04/01/2017
FASB Proposes Simplifications To Accounting For Nonemployee Share-Based Payments
The FASB has issued an Exposure Draft intended to reduce cost and complexity and to improve financial reporting for nonemployee share-based payments. The proposal was issued as part of the FASB’s Simplification Initiative.
03/23/2017
RubinBrown Partner, Audrey Katcher, Receives 2017 Trailblazer Award
Audrey Katcher, CPA, CISA, CITP, and partner of RubinBrown’s Business Advisory Services Group was honored as a 2017 University of Missouri – St. Louis Trailblazer.
03/20/2017
RubinBrown Expands To Las Vegas To Grow National Gaming Practice
Stewart Archibald & Barney, Las Vegas’ sixth largest accounting firm, and RubinBrown LLP , the nation’s 45th largest accounting and business consulting firm, are joining together effective June 1, 2017.
03/16/2017
Focus on Taxation: March 24 Is Deadline For 1040 Tax Documents
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 It’s tax season and RubinBrown team members are hard at work for our clients! We thank you for your trust in us and your business. Although the tax deadline (April 18) is a month away, we are requesting 1040 client tax documents be to us by Friday, March 24. This will ensure we are able to file timely for you.
03/02/2017
Focus on Life Sciences & Technology: 2016 AgTech Investment
Global venture capital (VC) investment cooled off in 2016, following 2015’s record high levels. Overall VC deal flow slowed nearly 25%, while dollars invested dropped 10%. Poor IPO performance and political uncertainty drove a hesitant fourth quarter, rounding out the down year. The agtech industry was impacted by the global VC decline, yet we see reasons to be optimistic.
03/01/2017
FASB Amends Not-For-Profit Consolidation Guidance
The FASB recently issued ASU 2017-02, Not-for-Profit Entities—Consolidation (Subtopic 958-810): Clarifying When a Not-for- Profit Entity That Is a General Partner or a Limited Partner Should Consolidate a For-Profit Limited Partnership or Similar Entity. The primary provision of this update is to include within Subtopic 958-810, the consolidation guidance previously contained in Subtopic 810-20 prior to the amendments of ASU 2015-02.
03/01/2017
FASB Simplifies Goodwill Impairment Test
The FASB has issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This standard eliminates the requirement for “Step 2” of today’s goodwill impairment test.
03/01/2017
FASB Updates Codification For SEC Staff Announcements
The FASB has issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323), which are amendments to SEC Paragraphs pursuant to staff announcements at the September 22, 2016 and November 17, 2016 EITF meetings.
03/01/2017
GASB Issues Statement On Fiduciary Activities
The GASB has issued GASB Statement No. 84, Fiduciary Activities. The objective of the statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The GASB determined there has been significant confusion and diversity in practice on this issue among state and local governments.
02/28/2017
Focus on Not-For-Profits: 403(b) Retirement Plans and The Universal Availability Rule
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The Department of Labor’s (DOL) new “fiduciary rules” are scheduled to become effective April 1, 2017; however, the DOL is currently considering legal options regarding a possible delay in the applicability date of these new rules. Trustees should continue to monitor the status of these rules over the next few weeks in order to confirm that plans are fully complying once the rules do take effect.
02/16/2017
Focus on Food & Beverage: St. Louis State of the Brew’nion
The Jefferson Ballroom on Chouteau was buzzing with beer talk on February 13, 2017, as brewers from across the city joined together for the St. Louis Brewers Guild’s inaugural State of the Brew’nion event.
02/13/2017
Focus On Not-For-Profits: Phishing Scam Recycled to Target Nonprofit Organizations
Recently the Internal Revenue Service (IRS) and other agencies issued an alert on a W-2 phishing scam. The original target was for profit businesses. Now nonprofits are being targeted as well. The criminals prefer to target organizations instead of individuals, because they may obtain sensitive information on a much larger scale.
02/10/2017
Focus on State and Local Taxation: Real Estate Reassessment
Many jurisdictions perform reassessments of all real property located within their boundaries to determine full and fair market value as of the applicable assessment date. Reassessment can occur annually or on a regular cycle every few years.
02/08/2017
RubinBrown Hires Bill Rooney as a Partner in the Tax Consulting Services Group
Bill Rooney, CPA, CGMA, joined RubinBrown as a partner in the Tax Consulting Services Group. Michael T. Lewis, CFA, managing partner of the Denver office, made the announcement.
02/08/2017
RubinBrown Hires Michael Bean as a Manager in the Business Advisory Services Group
Michael Bean, CPA, CFA, joined RubinBrown as a manager in the Business Advisory Services Group. Todd Pleimann, CPA, CGMA, managing partner of the Kansas City office, made the announcement.
02/06/2017
Focus on Mergers & Acquisitions: Market Update
After strong growth in 2014 and 2015, mergers and acquisition activity for private equity firms in the middle market decreased in
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 2016. According to PitchBook, private equity middle-market M&A activity (defined as transactions from $25 million to $1 billion) decreased 14.4% to 1,908 transactions while total deal value decreased 12.0% to $367 billion.
02/01/2017
FASB Clarifies The Definition Of A Business
The FASB has issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, with the objective of adding guidance to help entities evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business.
02/01/2017
FASB Issues Exposure Draft On The Classification Of Debt In A Classified Balance Sheet
The FASB has issued an Exposure Draft titled, Debt (Topic 470): Simplifying the Classification of Debt in a Classified Balance Sheet (Current versus Noncurrent). The amendments in this proposal would replace the current, fact-specific guidance with an overarching, cohesive principle.
02/01/2017
FASB Issues Technical Corrections And Improvements
The FASB has issued ASU 2016-19, Technical Corrections and Improvements. The FASB agenda contains a standing project which focuses on addressing feedback received from stakeholders on the Accounting Standards Codification. Technical Corrections are provided to correct differences between the original guidance and the Accounting Standards Codification, provide guidance clarification and correct references, simplify and provide minor improvements.
02/01/2017
FASB Proposes Changes To Inventory Disclosures
The FASB has issued an Exposure Draft titled, Disclosure Framework – Changes to the Disclosure Requirements for Inventory (Topic 330): Inventory. As part of the disclosure framework project, the FASB is proposing changes to the disclosure requirements for inventory in order to enhance the effectiveness of the notes to financial statements.
02/01/2017
FASB Provides Technical Corrections And Improvements To Topic 606, Revenue From Contracts With Customers
In 2014, the FASB issued a long awaited new standard on the recognition of revenue from contracts with customers (ASU 2014- 09, Revenue from Contracts with Customers). The FASB has continuously worked to improve the released but not yet effective standard by evaluating technical corrections and improvements.
01/30/2017
Focus on Life Sciences & Technology: 2016 Venture Capital Investment – A Year in Review
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Following a banner year in 2015, venture capital (VC) activity returned to a more normalized level in 2016. According to PriceWaterhouseCoopers’ and CBInsights’ MoneyTree™ Report, VC investment in the United States dropped 20% in 2016 to $58.6 billion, down from $73.4 billion in 2015. Deal count decreased to 4,520, down 16% from 2015’s 5,409 deals. Average deal size during 2016 declined roughly $.5 million year-over-year, but is still up nearly $2.4 million compared to 2014.
01/27/2017
Focus on Not-For-Profits: BBB Issues Scam Alert About QuickBooks Phishing Con
Recently the Better Business Bureau issued a scam alert about a phishing scam targeting small businesses.
01/27/2017
Focus on Small Business: BBB Issues Scam Alert About QuickBooks Phishing Con
Recently the Better Business Bureau issued a scam alert about a phishing scam targeting small businesses.
01/27/2017
Focus on State and Local Taxation: Amazon to Charge Missouri Sales Tax
Earlier this week, it was announced Amazon will begin charging Missouri sales tax as of February 1, 2017. The retailer will charge the state rate of 4.225 percent.
01/26/2017
Focus on Cyber Security: Vulnerability Management
RubinBrown Cyber Security Center of Excellence – Security You Need to Know. New vulnerabilities are identified every day. Most of us have workstations set to auto-update, servers and applications are handled by the systems administrators, but there are more and more products, devices and applications in our environments. How do you track the patches and updates for all those manufacturers and providers?
01/20/2017
Focus on Law Firms: Tax Implications for New Partners
The end of the calendar year usually coincides with law firms announcing partner promotions. When law firms are structured as partnerships, newly promoted partners can expect their tax situation to change for the 2017 filing year. For tax purposes, the partnerships report the firm income and the income “flows through” to the individual partners of the firm.
01/19/2017
Focus on Taxation: New Deadline of FinCEN Report 114 - Report of Foreign Bank and Financial Accounts (FBAR)
In 2015, Congress made significant revisions to the due dates for filing many important and common returns, including FinCEN
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Report 114, Report of Foreign Bank and Financial Accounts (known as the FBAR).
01/17/2017
Focus on Construction: News From the National Association of Home Builders 2017 Convention
RubinBrown recently attended the National Association of Home Builders (NAHB) International Builder’s Show in Orlando, Florida. As in prior years, the show is combined with the Kitchen and Bath Industry, International Window Coverings and International Surface Event Shows bringing the overall attendance to approximately 80,000.
01/17/2017
Focus on State and Local Taxation: Missouri Instructional Classes Update
During the 2016 veto session the Missouri legislature acted to protect taxpayers by overriding Governor Nixon’s veto of a senate bill related to the taxability of instructional classes.
01/16/2017
Focus on Not-For-Profits: Executive Compensation Policies and Best Practices
If you are familiar with Form 990, you are familiar with its question about compensation policies. Part VI, Section B of the 990, Question 15 asks if the organization’s process for determining the compensation of the organization’s top management official and other officers and key employees includes “a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision.”
01/11/2017
Focus on Taxation: Update on Small Captive Insurance Companies
Current tax law allows business owners to create their own insurance company, to which the insured business makes premium payments and takes a deduction for those payments. If this insurance company, also commonly known as a “captive,” makes an election under Internal Revenue Code §831(b), net premiums received by the captive are not taxable.
01/09/2017
Focus on State and Local Taxation: You May Owe Personal Property Tax
Business owners may complete all the necessary forms and permits to operate their businesses but may be surprised to receive a property tax bill from their local jurisdiction. Personal property tax is an ad valorem tax, meaning the tax amount is set according to the value of the tangible property.
01/09/2017
RubinBrown Releases 2016 Denver Metropolitan Area Public Sector Statistical Analysis
RubinBrown has released its 10th annual Public Sector Statistical Analysis report, which surveyed statistical and financial information from 31 municipalities in the Denver metropolitan area.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 01/09/2017
RubinBrown Releases 2016 Kansas City Metropolitan Area Public Sector Statistical Analysis
RubinBrown has released its 10th annual Public Sector Statistical Analysis report, which surveyed statistical and financial information from 24 municipalities in the Kansas City metropolitan area.
01/09/2017
RubinBrown Releases 2016 St. Louis Metropolitan Area Public Sector Statistical Analysis
RubinBrown has released its 10th annual Public Sector Statistical Analysis report, which surveyed statistical and financial information from 41 municipalities in the St. Louis metropolitan area.
01/09/2017
RubinBrown Releases 2016 Tennessee Public Sector Statistical Analysis
RubinBrown has released its 10th annual Public Sector Statistical Analysis report, and for the first time surveyed statistical and financial information from 32 municipalities in Tennessee.
01/02/2017
FASB Issues Accounting Standards Update on Classification and Presentation Changes in Restricted Cash on the Statement of Cash Flows
The FASB has issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash to eliminate diversity in practice in the classification and presentation of changes in restricted cash on the statement of cash flows.
01/02/2017
FASB Issues Exposure Draft to Address Issues for Certain Financial Instruments with Characteristics of Liabilities and Equity
The FASB has issued an Exposure Draft titled, Distinguishing Liabilities from Equity (Topic 480): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception.
01/02/2017
FASB Proposes To Simplify Stock Compensation Accounting
The FASB has issued an Exposure Draft, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting to provide clarity and reduce diversity in practice, as well as to reduce cost and complexity, when applying the guidance in Topic 718, Compensation—Stock Compensation, about a change to the terms or conditions of a share-based payment award.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 01/02/2017
GASB Issues Guidance for Asset Retirement Obligations
The GASB has issued Statement No. 83 that addresses asset retirement obligations. An asset retirement obligation is a legally enforceable liability associated with the retirement of a tangible capital asset. Under this statement, a government should recognize a liability and a corresponding deferred outflow of resources when the liability is legally incurred and reasonably estimable.
01/02/2017
GASB Proposes Additional Implementation Guidance
The GASB has issued an Exposure Draft entitled GASB Implementation Guide No. 201X-Y, Implementation Guidance Update – 201X. The GASB periodically issues implementation guidance to assist practitioners in implementing GASB Statements and to answer frequently asked questions. The implementation guidance takes the form of questions and answers on a variety of governmental accounting topics.
12/19/2016
Focus on Life Sciences & Technology: Staying Safe - The Ins & Outs of IRC 409A Safe Harbor Provisions
Equity based deferred compensation can be a great tool for companies looking to attract, retain and incentivize talent. It is especially potent for early stage companies who may not have the funding or cash flow to pay its employees at a market rate. Use of deferred equity compensation, such as stock options and stock appreciation rights (SARs) does carry some risk.
12/12/2016
Focus on Entrepreneurial Services: 1099 Best Practices
The new year brings more changes to the requirements for filing 1099s. Along with these changes, the IRS has also added additional penalties. We urge all our clients to adopt and implement strategies now, before the end of the year, to enable you to comply with the tighter deadlines. Developing a strategy now will provide efficiencies going forward for preparing or providing the information to have 1099s prepared.
12/09/2016
Focus on Not-For-Profits: Should Your Not-For-Profit Be Audited?
Many not-for-profits may wonder, “Is an audit necessary for our organization?” In reality, there is no one-size-fits-all answer to that question. There are several different levels of assurance services available to satisfy the varying needs of an organization. Some are much more in-depth than others, but all services can provide value to any not-for-profit organization.
12/08/2016
Focus on Fraud & Forensics: The Fraud Risk Management Guide
Organizations are continually faced with how to best address the risk of fraud. This challenge sometimes comes with uncertainties
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 on what steps should be taken to assess the risk of fraud and what internal controls would be helpful to reduce the risk of fraud. Performing a Fraud Risk Assessment is a key step in evaluating the potential for fraud.
12/05/2016
RubinBrown Hires Christine Boushka as a Manager in the Wealth Advisory Services Group
Christine Boushka, CPA, joined RubinBrown as a manager in the Wealth Advisory Services Group.
12/01/2016
FASB Amends Consolidation Guidance
The FASB has issued ASU No. 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. The amendments in this ASU affect reporting entities that are required to evaluate whether they should consolidate a variable interest entity (VIE) within the Variable Interest Entities Subsections of Subtopic 810-10, Consolidation – Overall, in certain situations involving entities under common control.
12/01/2016
FASB Issues ASU on Tax Effects of Intra-Entity Asset Transfers Other Than Inventory
The FASB has issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. The FASB undertook this project as part of its effort to simplify accounting standards.
12/01/2016
FASB Proposes Technical Correction to ASU No. 2016-14 Related to Endowment Reporting
The FASB has published an Exposure Draft entitled Technical Correction to Update No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-Profit Entities – Endowment Reporting. The Exposure Draft would correct an error in the required elements of endowment disclosures for not-for-profit entities.
12/01/2016
FASB Seeks to Clarify Accounting for Service Concession Arrangements
In November 2016, the FASB issued the Exposure Draft, Service Concession Arrangements (Topic 853), Determining the Customer of the Operation Services. Stakeholders identified diversity in practice related to how an operating entity determines the customer of the operation services for transactions under service concession arrangements. This Exposure Draft is meant to clarify that diversity and reduce complexity of application of the guidance.
12/01/2016
GASB Proposes Additional Guidance For OPEB
The GASB has issued an Exposure Draft of the Implementation Guide for Statement No. 74 Financial Reporting for
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Postemployment Benefit Plans Other Than Pension Plans (OPEB) which is designed to provide guidance that clarifies, explains, or elaborates on the requirements of Statement No. 74. The implementation guidance would apply to the financial statements of all state and local governments.
11/30/2016
Focus on Healthcare: Relief for Small Practices Under Final MACRA Ruling
In 2015 the Medicare Access and CHIP Reauthorization Act (MACRA) was passed which was a bipartisan agreement to move towards a value-based system of care. The Act would create a new approach to paying clinicians for the value and quality of care they provide. At the time of the Act’s passage nearly a year ago, it was unknown how it would be implemented or the exact details of how it would work.
11/28/2016
Focus on Taxation: New Overtime Rules Scheduled to Take Effect December 1 Postponed Indefinitely
On November 22, U.S. District Judge Amos Mazzant indefinitely postponed implementation of the United States Department of Labor (DOL) overtime rules originally set to go into effect on December 1.
11/16/2016
Focus on Taxation: 2016 Presidential Election Expected to Bring Tax Law Changes
President-elect Trump had made tax reduction a centerpiece of his economic plans during his campaign, saying he would, among other things, propose lower and consolidated individual income tax rates, expand tax breaks for families and repeal the Affordable Care Act.
11/14/2016
Focus on Fraud & Forensics: RubinBrown Joins Movement to Shine a Spotlight on Fraud
International Fraud Awareness Week kicks off November 13, 2016 worldwide. ACFE provides statistics and prevention checklist.
11/14/2016
Focus on Taxation: Treatment of Certain Interests in Corporations as Stock or Indebtedness
On Thursday October 13, 2016, the United States Treasury and the IRS issued final and temporary regulations under section 385 of the Internal Revenue Code. The 385 Regulations provide rules and guidelines on documentation requirements that are used to determine the treatment of particular related-party interests in a corporation as indebtedness or stock for U.S. federal income tax purposes. The 385 regulations superseded the “Proposed Regulations” from April 4, 2016.
11/10/2016
Focus on Colleges & Universities: CACUBO Annual Meeting Recap
Topics covered include financial reporting and accounting changes, shared services, cyber security and other cultural,
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 demographic and strategic topics.
11/10/2016
Focus on Life Sciences & Technology: Precision Ag Improves Farm Profitability
A report issued by the U.S. Department of Agriculture’s Economic Research Service, looked at adoption rates for precision agriculture (PA) to investigate PA adoption and its impact on profitability.
11/10/2016
Focus on R&E Tax Credits: Research Credit Enhancements Provide New Opportunities
Has your company considered claiming the Research and Experimentation (R&E) tax credit, only to be told you couldn’t because of the Alternative Minimum Tax (AMT)? If so, recent federal tax law changes for small business owners make it worthwhile to take a fresh look at the R&E credit.
11/01/2016
FASB Issues Exposure Draft Related To Accounting For Certain Long-Duration Contracts
The FASB has issued an Exposure Draft titled, Financial Services – Insurance (Topic 944) – Targeted Improvements to the Accounting for Long-Duration Contracts.
11/01/2016
FASB Proposes Changes To Rules For Amortization Of Premium On Purchased Callable Debt Securities
The FASB has issued an Exposure Draft titled, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization of Purchased Callable Debt Securities.
11/01/2016
FASB Proposes Technical Corrections And Improvements To New Revenue Recognition Guidance
The FASB has issued an Exposure Draft titled, Technical Corrections and Improvements to Update No. 2014-09, Revenues from Contracts with Customers (Topic 606), Additional Corrections.
11/01/2016
GASB Proposes Omnibus Statement Addressing A Broad Range Of Practice Issues
The GASB has issued the Exposure Draft, Omnibus 201X, which proposes guidance to address a diverse set of accounting and financial reporting issues identified during implementation and application of certain GASB pronouncements. The requirements of this Exposure Draft would improve consistency in the application of GASB pronouncements.
10/25/2016
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Law Firms: 10 Ways Employees Can Steal from Your Law Firm and How Data Analytics Can Help You Detect Fraud
Every year, organizations lose an estimated 5% of revenue to fraud. While fraud can never be completely eliminated, controls can be implemented to drastically reduce the chance of fraud in your firm. Establishing a strong ethical culture and a zero tolerance policy for fraud is a good first line of defense. This culture can be supported through strong written policies and internal processes that embrace best practices and strong preventive controls.
10/18/2016
Focus on Cyber Security: October is Cyber Security Awareness Month
Training Resources to Reduce your Risk. We all need security awareness training. Whether you just know it, it is required for compliance or a recent security assessment recommended it, we all know we need more security awareness training. Great News! October is National Cyber Security Awareness Month!
10/17/2016
Focus on Life Sciences & Technology: 2016 Venture Capital Investment – Third Quarter Update
Third quarter 2016 U.S. venture capital (VC) results show a continuation of the downward trend in VC activity that started in mid- 2015. Both investment and deals were down this quarter, with amounts invested dropping significantly, down 32% from the prior quarter and down 36% year-over-year. Third quarter investment of $10.6 billion was the lowest level of investment since the third quarter of 2014.
10/17/2016
RubinBrown Promotes Reiss and McFarland to Manager Positions
RubinBrown promoted Jeremy Reiss, CPA, to manager in the Tax Services Group and Mitch McFarland, CPA, to manager in the Assurance Services Group.
10/13/2016
RubinBrown Hires Ross Hewitt as a Partner in the Tax Consulting Services Group
Ross Hewitt III, CPA, joined RubinBrown as a partner in the Tax Consulting Services Group.
10/06/2016
Focus on Entrepreneurial Services: Tax Return Due Date Changes to the 2016 Tax Year (2017 Filing Season)
Legislation passed by Congress and signed into law by President Obama on July 31, 2015 has modified the tax filing due dates for taxable years starting after December 31, 2015.
09/30/2016
FASB Changes Presentation Requirements For Financial Statements Of Not-For-Profit Entities
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities, has been released by the FASB, with the ASU effective for annual financial statements issued for fiscal years beginning after December 15, 2017. The changes in this ASU are the first significant changes to not-for-profit entities’ financial statement presentation in more than 20 years.
09/30/2016
FASB Issues Guidance For Classification Of Certain Items On The Statement Of Cash Flows
The FASB has issued ASU 2016-15, Statement of Cash Flows (Topic 230). As part of its initiative to reduce diversity in accounting practice, the FASB has identified eight specific cash flow issues that are addressed within the ASU. Extant GAAP is either unclear or does not include specific guidance on the eight classification issues.
09/30/2016
FASB Solicits Feedback On Proposed Changes To Hedge Accounting Rules
The FASB is soliciting feedback from the public related to proposed hedge accounting rules changes. The proposed changes focus both on improving how the economic results of an organization’s risk management activities are portrayed through accounting and reporting disclosures in addition to the simplification of certain applications in current hedge accounting rules.
09/30/2016
GASB Proposes New Guidance For Certain Debt Extinguishments
The GASB has published an Exposure Draft that proposes uniform guidance for debt that is extinguished early using only existing resources. State and local governments defease debt “in substance” by placing sufficient resources in an irrevocable trust to make payments on the defeased debt when the payments come due. Debt that is defeased in substance no longer appears on the financial statements, however disclosures are required about the debt that has been defeased in substance.
09/28/2016
Focus on Cyber Security: Cyber Attest - The Changing Landscape
We are on the brink of a major shift in the cyber security landscape. Cyber attest allowing a focus on the entire cyber risk environment as well as a focus on particular systems. New proposed legislation, PCAOB discussions and new criteria from the AICPA on cyber attestation standards are all signs of impending changes that will require cyber security integration throughout the environment to provide transparency and assurance. Here are some of the proposed changes we believe could change the cyber security landscape.
09/22/2016
Focus on Craft Beverage: What the AB InBev, SABMiller Deal Means for U.S. Craft Brewers
The $107 billion merger deal between brewers Anheuser-Busch InBev and SABMiller moved one step closer to completion recently after receiving U.S. antitrust approval in late July. The deal would give the Belgian-based brewer of Budweiser a nearly 30% share of the global beer market. In receiving approval from the U.S. Department of Justice, AB InBev agreed to make certain concessions aimed at protecting craft beer brewers. What these concessions are and the implications they will have for U.S. craft
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 beer brewers are explored in is article.
09/21/2016
Focus on State and Local Taxation: Missouri Instructional Classes
During the recent 2016 veto session the Missouri legislature acted to protect taxpayers by overriding Governor Nixon’s veto of a senate bill related to the taxability of instructional classes.
09/15/2016
Focus on Life Sciences & Technology: Highlights from the 2016 Ag Innovation Showcase
On September 12, 13 and 14, 2016, the Donald Danforth Plant Science Center hosted the 2016 Ag Innovation Showcase. There was a ton of great programming, sessions, and company presentations. Here are some of the highlights.
09/14/2016
Focus on State and Local Taxation: Arizona and Pennsylvania Tax Amnesty Programs
Arizona and Pennsylvania are offering tax amnesty programs to taxpayers. The Arizona program provides amnesty for individual and corporate income taxes for tax years ending before January 1, 2014 and transaction privilege (sales) taxes, including such taxes for program cities, for tax periods ending prior to February 1, 2015.
09/12/2016
New Nashville Partner Adds to RubinBrown’s Depth in Construction Industry
RubinBrown announces that Bryan Hinton, CPA, has joined the firm as a partner in its Nashville office.
09/09/2016
Focus on Cyber Security: Protecting Against Cyber Extortion
Prevent, detect, recover and above all else prepare. Ransomware holding data hostage. Threats to release sensitive information. Disruptive denial-of-service attacks. All are extortion schemes used by cyber criminals to separate you from your money. Extortion schemes are not new, but cyber criminals are constantly looking for new ways to use our technology against us.
09/01/2016
FASB Issues Proposed Changes To Income Tax Disclosure Requirements
The FASB has issued an Exposure Draft, Income Taxes (Topic 740): Disclosure Framework - Changes to the Disclosure Requirements for Income Taxes. This proposal is primarily intended to improve the effectiveness of disclosures required by GAAP in the footnotes to the financial statements by facilitating clear communication of information that is most important to financial statement users.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 09/01/2016
FASB Proposes Additional Concepts Statement
The FASB has issued an Exposure Draft of a proposed Concepts Statement entitled Concepts Statement 8 – Conceptual Framework for Financial Reporting. The FASB Conceptual Framework contains multiple chapters, and this Exposure Draft would represent Chapter 7 and would cover the topic of Presentation.
09/01/2016
FASB Proposes Change To Not-For-Profit Consolidation Guidance
The FASB recently issued an Exposure Draft, Subtopic 958-810 Clarifying When a Not-for-Profit Entity That Is a General Partner Should Consolidate a For-Profit Limited Partnership or Similar Entity. The primary provision of this proposed update is to include within Subtopic 958-810, the consolidation guidance previously contained in Subtopic 810-20 prior to the amendments of ASU 2015-02.
09/01/2016
FASB Seeks Input On Agenda
The FASB has issued an Invitation To Comment, Agenda Consultation. The FASB wants to address major areas of financial reporting that have been flagged as needing improvement. The consultation began with the Financial Accounting Standards Advisory Council survey.
09/01/2016
FASB Seeks To Improve Master Trust Reporting
The FASB has issued an Exposure Draft, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting. The FASB is issuing this Exposure Draft to improve the usefulness of the information reported to users of employee benefit plan financial statements. This proposal relates primarily to the reporting by an employee benefit plan for its interest in a master trust.
08/30/2016
Focus on Valuation: Proposed Regulations May Limit Valuation Discounts for Interests in Family-Controlled Entities
On August 4, 2016, the Internal Revenue Service released much-anticipated proposed regulations to Internal Revenue Code § 2704 (REG-163113-02) that would greatly impact or eliminate discounts when valuing transfers of interests of entities to family members. Valuation discounts are a significant component of estate planning.
08/29/2016
RubinBrown Hires Two New Managers in St. Louis Office
RubinBrown recently hired Duane Reeves as a manager in the Cyber-Security Practice Group and Roland Thomas, CPA, as a
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 manager within the Tax Services Group.
08/25/2016
Focus on Construction: News from the National Associated General Contractors’ Financial Issues Committee Meeting
RubinBrown’s Construction Services Group recently attended the National Associated General Contractors’ (AGC) Financial Issues Committee meeting in Washington, D.C.
08/25/2016
Focus on Transportation and Dealerships: Enforcement Up, North Carolina Enacts Stricter Insurance Law
North Carolina has passed a new law that will allow increased enforcement on out-of-state commercial vehicle operators who illegally register vehicles by listing their place of residence or business in the state to take advantage of cheaper insurance rates.
08/24/2016
Focus on Real Estate: Affordable Housing & Veteran Homelessness
On August 1, the Department of Housing and Urban Development issued press release No. 16-117, following a related White House report from the day before. The articles describe the Obama Administration’s past, present and future plans to reduce overall veteran homelessness, and the results of those efforts to date.
08/23/2016
Focus on Not-For-Profits: ASU No. 2016-14, Presentation of Financial Statements of Not-For-Profit Entities
Accounting Standards Update (ASU) No. 2016-14, Presentation of Financial Statements of Not-for-Profit Entities, was released August 18, 2016 by the Financial Accounting Standards Board (FASB), with the ASU effective for annual financial statements issued for fiscal years beginning after December 15, 2017. As previously presented and discussed in our seminars, the changes in this ASU are the first significant changes to not-for-profit entities’ financial statement presentation in more than 20 years.
08/22/2016
Debbi Warden Honored with Women to Watch Award
The Colorado Society of Certified Public Accountants, in collaboration with the American Institute of Certified Public Accountants, recently honored Debbi Warden, a partner in the Entrepreneurial Services Group at RubinBrown, with the Women to Watch Award.
08/16/2016
Focus on Construction: News from the National Association of Home Builders Mid-Year Board Meeting
RubinBrown recently attended the mid-year board meeting of the National Association of Home Builders as a member of the Business Management and Information Technology Committee.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 08/16/2016
Focus on Life Sciences & Technology: First Half 2016 AgTech Funding Highlights
AgFunder’s “AgTech Investing Report – Mid-Year 2016” was recently released. Here are some of the highlights we gleaned from the report.
08/16/2016
RubinBrown Promotes Sparlin to Lead State & Local Tax Services Group
RubinBrown has named Rhonda Sparlin, CPA, to lead the firm's State & Local Tax Services Group as partner-in-charge.
08/11/2016
Focus On Not-For-Profits: Launch of RubinBrown's QuickBooks Software Users’ Group
RubinBrown is focused on helping our clients grow and providing resources to help achieve this growth. Because many organizations currently utilize QuickBooks, we are interested in sharing our expertise to help organizations get the most out of this software.
08/04/2016
Focus on State and Local Taxation: Missouri Delivery Charges
Earlier this week, the Missouri Department of Revenue mailed nearly 100,000 letters to taxpayers regarding delivery charges. The letters were mailed to notify taxpayers of a Missouri Supreme Court decision regarding the potential obligation to remit tax on delivery charges. Prior to the court ruling Missouri allowed separately stated shipping/delivery fees to be exempt from the tax base.
08/04/2016
RubinBrown Promotes Three Managers in the Assurance Services Group
RubinBrown recently promoted Adam Castellano, CPA, Curtis Hoette, CPA, and Tim McCarthy, CPA, to manager positions within the Assurance Services Group.
08/04/2016
RubinBrown Promotes Two Managers in the Business Advisory Services Group
RubinBrown recently promoted Kara Clement-Bayard, CPA, and Chris Tkach, CPA, to manager positions within the Business Advisory Services Group.
08/04/2016
RubinBrown Promotes Two Managers in the Entrepreneurial Services Group
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 RubinBrown recently promoted Eric Muskopf, CPA, and Katelynn Lomax, CPA, to manager positions within the Entrepreneurial Services Group.
08/04/2016
RubinBrown Promotes Two Managers in the Tax Services Group
RubinBrown recently promoted Lindsey Priebe, CPA, and Jessica Seiffert, CPA, to manager positions within the Tax Services Group. The announcements were made by John Herber, CPA, CGMA, chairman and managing partner.
07/27/2016
Focus on Not-For-Profits: Is Your 501(c)(4) Organization Required to File Form 8976 by September 6, 2016?
On July 8, 2016, the Internal Revenue Service published regulations implementing Section 506 of the Internal Revenue Code. Section 506 requires that certain 501(c)(4) organizations notify the IRS within 60 days of when they are formed.
07/27/2016
RubinBrown Manager, Chris Tkach, Honored with 30 Under 30 Award
Chris Tkach, a manager in the Assurance Services Group at RubinBrown, was recently honored at the St. Louis Business Journal’s annual 30 Under 30 awards banquet at Palladium St. Louis for his professional achievements and contributions to the St. Louis community.
07/25/2016
Focus on Healthcare: MACRA – A Move to a Value-Based System of Care
In 2015 the Medicare Access and CHIP Reauthorization Act (MACRA) was passed which was a bipartisan agreement to move towards a value-based system of care. Prior to MACRA, physicians providing care to Medicare patients were subject to a reimbursement formula known as the Sustainable Growth Rate (SGR). The SGR was established to help control the rate of increases in physician spending and compared total spending among all Medicare-participating physicians to an overall budgeted target.
07/25/2016
Focus on Law Firms: Law Firm Merger Activity – An Update
For an increasing number of law firms, the pursuit of mergers and acquisitions has become a primary strategy for continued growth. Across the country, law firm leaders are finding that the demand for law services is flat and there was a record number of deals in 2015 as a result of heated competition among firms for new work.
07/21/2016
Focus on Life Sciences & Technology: 2016 Venture Capital Investment – Second Quarter Update
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 U.S. venture capital (VC) results for the second quarter present a mixed picture. On the one hand, capital raised increased significantly from Q1 2016, up 20% to $15.3 billion.
07/21/2016
RubinBrown Names Lilly to Lead Assurance Services for Kansas City Office
Kaleb Lilly, CPA, has been named Partner-In-Charge of the Assurance Services Group for RubinBrown’s Kansas City office.
07/21/2016
RubinBrown Promotes Four St. Louis Partners to New Leadership Positions
RubinBrown recently promoted Steve Brown, CPA, Tim Sims, CPA, CGMA, Henry Rzonca, CPA, and Tom Tesar, CPA, CFP®, to leadership positions within the national accounting and business consulting firm.
07/20/2016
FASB Issues New Guidance On Credit Losses
The FASB has issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments. This new standard and guidance replaces some historical guidance and is applicable to entities that have financial assets not measured at fair value through net income.
07/20/2016
FASB Proposes Change To Consolidation Guidance Resulting From ASU 2015-02
The FASB has issued an Exposure Draft titled, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control.
07/19/2016
Focus on Public Sector, Not-For-Profit and Colleges & Universities: New DCF Changes and Related Filing Extensions
On July 19, 2016, the U.S. Office of Management and Budget (OMB) released the newest version of the Data Collection Form (DCF) which incorporates changes that were needed to conform to the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards included in 2 CFR 200 (Uniform Guidance).
07/11/2016
Focus on Taxation: Safe Harbor to Deduct 75% of Remodeling Costs (Retailers and Restaurants)
Have you remodeled your retail facility or restaurant since January 1, 2014? Or do you intend to undertake such a project in the near future for such a facility? If so, and if you have an audited financial statement, a simplified procedure may be available to you to automatically deduct up to 75% of these costs.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 07/07/2016
Focus on Cyber Security: Maintaining Security When Using Amazon Web Services
Moving data storage and processing to the cloud has been a growing trend for several years. As companies realize maintaining expensive computing infrastructure resources are no longer necessary, businesses are considering services like Amazon Web Services (AWS) to handle their infrastructure needs.
07/07/2016
Focus on Transportation and Dealerships: Proposed IRS Guidance Changes Transportation Equipment Taxes
The IRS issued proposed guidance focusing on retailer’s excise tax imposed on highway-type equipment, which if passed, would change the way certain transportation equipment is taxed. The proposed regulations help align the current regulations to properly reflect the current law. Additionally the regulations provide support for any buyer of an incomplete chassis cab that also confirms to the seller that he will not change the incomplete chassis cab into a taxable tractor.
07/05/2016
Focus on Taxation: Time Sensitive Opportunity - Work Opportunity Tax Credit (WOTC) Extension for 2015 and 2016
WOTC is a federal credit for employers that hire individuals from targeted groups and is currently extended through December 31, 2019. Back in March, the IRS issued guidance and transition relief with Notice 2016-22 as a result of the PATH Act extending the WOTC retroactively for 2015 and adding a new targeted group for Long-Term Unemployed Recipients effective January 1, 2016.
06/29/2016
Harris Elected Chair of National Association of Black Accountants, Inc.
Steven Harris, CPA, partner-in-charge of RubinBrown’s Entrepreneurial Services Group, was named chairman of the Board of Directors for the National Association of Black Accountants, Inc. at its recent Annual Meeting.
06/27/2016
FASB Proposes Additional Guidance On Revenue Recognition
The FASB has issued an Exposure Draft titled, Technical Corrections and Improvements to Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). This Exposure Draft is primarily intended to correct unintended application of guidance of Topic 606 and is not expected to have a significant effect on current accounting practice.
06/27/2016
FASB Proposes Guidance On Derecognition Of Nonfinancial Assets
The FASB recently issued an Exposure Draft titled Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The proposal is intended to clarify the appropriate application of the standards regarding asset derecognition and to
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 provide guidance regarding partial sales of nonfinancial assets.
06/27/2016
FASB Proposes Simplification For Measuring Goodwill Impairment
The FASB has issued an Exposure Draft entitled Intangibles—Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment. The Exposure Draft would simplify the process of measuring goodwill impairment in response to concerns from reporting entities and stakeholders about the cost and complexity of the goodwill impairment test.
06/27/2016
RubinBrown Rolls Out New Brand For Wealth Advisory Services
RubinBrown, one of nation’s top 50 accounting and business consulting firms, announced today the roll out of a new brand and logo for its wealth advisory services. The new brand, RubinBrown Wealth Advisors, better represents the integrated suite of services offered by the firm.
06/23/2016
Focus on Law Firms: Managing Law Firm Fraud Risks - An Internal Control Checklist
Although the majority of employees are honest, a trusted employee will steal when three elements exist: pressure, opportunity and rationalization.
06/23/2016
RubinBrown Promotes Knoblauch to Partner
RubinBrown recently named Megan Knoblauch, CPA, to partner in its Assurance Services Group. Todd Pleimann, CPA, CGMA, managing partner of the Kansas City office, made the announcement.
06/23/2016
RubinBrown Promotes Mannello and Westby to Partner
RubinBrown recently promoted Jason Mannello, CFA®, CLP, to partner in its Business Advisory Group, and named Eric Westby, CPA, CGMA to partner in its Assurance Services Group. Fred Kostecki, CPA, CGMA, managing partner of the St. Louis office, made the announcement.
06/23/2016
RubinBrown Promotes Ryan to Partner
RubinBrown recently promoted Kim Ryan, CPA (CA), JD, LL.M., to partner in its Tax Services Group. Michael T. Lewis, CFA, managing partner of the Denver office, made the announcement.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 06/02/2016
Focus on Taxation: Change to Minimum Salary Level to Qualify for Exempt Status
The Department of Labor (DOL) published its final rule concerning the minimum salary level necessary in most cases for an employer to qualify as exempt from overtime pay under the Fair Labor Standards Act (FLSA). In the absence of an exemption, the FLSA provides that an employee is entitled to receive pay at the rate of time and one-half for all hours worked over 40 in a week.
06/01/2016
FASB Issues Exposure Draft On Classification And Presentation Of Restricted Cash On The Statement Of Cash Flows
The FASB has issued an Exposure Draft titled, Statement of Cash Flows (Topic 230): Restricted Cash to eliminate diversity in practice in the classification and presentation of changes in restricted cash on the statement of cash flows.
06/01/2016
FASB Issues Revenue Recognition Narrow-Scope Amendments And Practical Expedients
The FASB has issued Accounting Standards Update 2016-12, which is intended to improve the guidance on collectability, noncash consideration, and completed contracts at transition in the new revenue recognition standard. Additionally, the update provides an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers.
06/01/2016
FASB Proposes Technical Corrections And Improvements
The FASB has issued an Exposure Draft which would make technical corrections and improvements to the Accounting Standards Codification.
06/01/2016
FASB Provides Further Clarifications On Revenue Recognition Guidance
The FASB has issued ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing.
06/01/2016
FASB Rescinds Certain SEC Staff Observer Comments
The FASB has issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting.
06/01/2016
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 GASB Issues Guidance On Pension Issues
The GASB has issued Statement No. 82 titled, Pension Issues (an amendment of GASB Statements No. 67, No. 68, and No. 73).
06/01/2016
RubinBrown Adds Partner to Its Denver Office
Cory Underwood, CFA, CFP, recently joined RubinBrown as a partner in the firm’s Wealth Management Services Group.
05/05/2016
Focus on Not-For-Profits: Federal Tax Legislation Impacts Exempt Organizations
Back in December, Congress passed, and the President signed into law, tax legislation as outlined below. Many provisions of this law directly impact Not-For-Profit entities and other provisions may have an indirect impact. The following summary of those provisions should be considered when planning for tax reporting for 2016.
05/04/2016
Focus on Life Sciences & Technology: 2016 Venture Capital Investment – First Quarter Update
U.S. venture capital (VC) investment was $12.1 billion in Q1 2016, up 1% over Q4 2015, but down 11% when compared to Q1 2015. On a national level, the slowdown in venture activity that began in the second half of 2015 (2015 Venture Capital Investment: Year in Review) appears to be continuing. Venture activity peaked in Q2 2015 and has steadily decreased since then.
04/26/2016
RubinBrown Announces Senior Leadership Succession & Retirement
RubinBrown, one of the nation’s top 50 accounting and business consulting firms, announced today several top leadership changes effective June 1, 2016. The changes reflect implementation of the firm’s long-term succession plan to support the expansion and growth of the 64-year-old firm.
04/14/2016
Focus on Law Firms: American Bar Association Opposes Proposal that Would Require Law Firms to Adopt Accrual Basis of Accounting
In a letter dated April 13, 2016, the American Bar Association (ABA) President Paulette Brown addressed the leaders of the House Ways and Means Subcommittee on Tax Policy. In the letter, she voiced opposition to the proposals that would require professional services firms to adopt the accrual basis of accounting as opposed to the more widely used and simpler cash basis method.
04/11/2016
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Service Organization Controls: Changes to SOC 1
The AICPA Auditing Standards Board has issued “Attestation Standards: Clarification and Recodification (Supersedes Statement on Standards for Attestation Engagements Nos. 10–17).”
04/06/2016
Focus on Fraud & Forensics: Association of Certified Fraud Examiners Publishes 2016 Report to the Nations
Fraud costs organizations 5% of their annual revenues, according to a study conducted by the Association of Certified Fraud Examiners (ACFE). The staggering costs of fraud, however, have impacts far more reaching than the monetary impact alone.
04/06/2016
Focus on Life Sciences & Technology: Highlights from the 2016 InvestMidwest Venture Capital Forum
On March 23 and 24, 2016, the InvestMidwest Venture Capital Forum was held in downtown St. Louis. The event featured dozens of early stage companies pitching to venture capital investors and was a great opportunity to showcase emerging companies in the life sciences, technology, and food/agriculture/bioenergy industries.
04/04/2016
Focus on Taxation: Time Sensitive Opportunity - Work Opportunity Tax Credit (WOTC) Extension for 2015 and 2016
WOTC is a federal credit for employers that hire individuals from targeted groups and is currently extended through December 31, 2019. The IRS recently issued guidance and transition relief with Notice 2016-22 as a result of the PATH Act extending the WOTC retroactively for 2015 and adding a new targeted group for Long-Term Unemployed Recipients effective January 1, 2016.
03/28/2016
Focus on Law Firms: Professional Corporations and Shareholder Compensation
A recent tax court decision was handed down to a law firm operating as a professional corporation (P.C.) in which the IRS held the firm liable for accuracy-related penalties for mischaracterizing payments made to shareholders. The firm initially paid amounts to shareholders and characterized them as year-end bonuses, the IRS argued they should have been classified as dividends. These dividends would have been taxable to the shareholders as well as not deductible by the corporation.
03/25/2016
U.S. Gaming Industry Revenue Surpasses All-Time High of $70 Billion
A new report shows the nation’s overall gaming industry marked its sixth consecutive year of growth and generated $71.1 billion in annual revenue, a 3.1 percent increase from $68.7 billion in 2014. Additionally, according to the report, the industry has grown by $5 billion from its pre-recession levels of $66.1 billion in 2007.
03/24/2016
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Real Estate: Cantwell to Launch National Campaign to Increase Federal Resources for Affordable Housing & Homelessness
On March 23, 2016, the office of U.S. Senator Maria Cantwell (D-WA) issued a press release announcing an affordable housing initiative and unveiling the report “The Housing Tax Credit: Addressing the Challenges of Affordable Housing & Homelessness.”
03/04/2016
Focus on Taxation: New Foreign Financial Asset Reporting Requirements
The IRS has recently issued new regulations which require "specified domestic entities" to report its interest in certain foreign financial assets on Form 8938, Statement of Foreign Financial Assets. The penalty for non-compliance is $10,000 per year.
03/03/2016
Focus on Cyber Security: U.S. Government Ramping Up on Cyber Security
The Cyber Security National Action Plan – what to expect. On the surface the news of the Cyber Security National Action Plan sounds impressive – increasing the federal government’s investment in cyber security by 35% to $19 billion and creating a Federal Chief Information Security Officer position.
02/26/2016
Focus on Assurance: Financial Reporting Over Lease Transactions
The Financial Accounting Standards Board (FASB) has released an Accounting Standards Update (ASU) designed to improve financial reporting over lease transactions. The ASU will impact all companies and other organizations that lease assets, including real estate, equipment and other personal property.
02/25/2016
RubinBrown Adds Partner to Wealth Management Group
Steve Wisniewski recently joined RubinBrown as a partner in the firm’s Wealth Management Services Group.
02/16/2016
Focus on Cyber Security: Your Internet Explorer Could Be Exposed
Microsoft Ending Support for Internet Explorer 8, 9 and 10.
Why do you need to care Microsoft ended support on Internet Explorer 8, 9 and 10 on January 12, 2016? We all use web browsers all the time. In fact, you may be reading this with a web browser right now. If you, or your organization, still use any of those versions of Internet Explorer you will no longer receive patches and updates, putting your system and organization at risk.
02/11/2016
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Life Sciences & Technology: 2015 Venture Capital - A Year in Review
In 2015, venture capital (VC) investment reached its highest level since 2000 (but deal count dropped slightly from 2014). According to PriceWaterhouseCoopers’ and the National Venture Capital Association’s MoneyTree™ Report, VC investment in the United States increased 16% in 2015 to $58.8 billion, up from $50.8 billion in 2014 (See our 2014 Year in Review)
02/11/2016
Focus on Risk Services: Changes in Internal Auditing Standards
The Institute of Internal Auditors (IIA) has unveiled proposed changes to its International Standards for the Professional Practice of Internal Auditing (Standards), and announced a 90-day exposure period — February 1 to April 30 — for public comment.
02/05/2016
Focus on Gaming: Cyber Security - Address compliance as part of an Organization Security Program
Hyatt Hotels Corporation’s announcement that guest payment card information was likely accessed by unknown cyber criminals from 250 hotels across the world between August 13 and December 8, 2015, is a reminder of how important cyber security is to your organization.
02/04/2016
Smith and Pisoni Join RubinBrown
RubinBrown recently added Dominic Pisoni, CPA, and Curtis Smith, CIA, CISA, as managers to its St. Louis office.
01/28/2016
RubinBrown Adds Anderson As Partner
Jim Anderson, CPA, recently joined national accounting firm RubinBrown as a tax partner in the firm’s Kansas City office.
01/27/2016
Focus On Construction: News From The National Association Of Home Builders 2016 Convention
RubinBrown recently attended the NAHB International Builder’s Show in Las Vegas.
01/26/2016
Focus on Taxation: IRS Provides Relief to Missouri Storm Victims
On January 22, 2016, the Internal Revenue Service (IRS) announced that Missouri storm victims will receive tax relief.
01/26/2016
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 RubinBrown Adds New Manager
Dennis Lazaroff, CPA, recently joined RubinBrown, as a tax manager.
01/25/2016
Focus on Gaming: Monthly Digital Analysis of Commercial Gaming Revenues
RubinBrown’s Gaming Services Group Recently launched a new service – a monthly digital analysis offering valuable revenue stats (both on a national and regional level) and trend insight on the commercial gaming industry.
01/21/2016
The Business Manager Joins RubinBrown
The Business Manager, LLC, a Denver-based outsourced accounting services firm, and RubinBrown LLP, one of the nation’s top 50 largest accounting firms, are joining together, effective immediately.
01/20/2016
Focus on Entrepreneurial Services: 1099 Information Return Requirements & 2016 Payroll Tax Guide
What to Report in 2015 — Payments of $600 or more to individuals, sole proprietorships or partnerships for rent, prizes or awards, or services rendered for a trade or business by individuals, sole proprietorships and partnerships not treated as their employees.
01/20/2016
Focus on Law Firms: Tax Implications for New Partners
The end of the calendar year usually coincides with law firms announcing partner promotions. When law firms are structured as partnerships, newly promoted partners can expect their tax situation to change for the 2015 filing year.
01/18/2016
Focus on Healthcare: CMS Releases 2016 Calendar Year Changes to the Medicare Physician Fee Schedule
In November, the Centers for Medicare & Medicaid Services (CMS) released the new Physician Fee Schedule (PFS). The PFS sets forth the payments physicians and other practitioners receive for their various services, including but not limited to, office visits, surgical procedures, diagnostic tests and certain preventative services. Payments are based on the relative resources that are typically necessary to provide a service. Relative value units are applied to each service provided by the physician, in addition to factoring in practice expense and malpractice.
01/14/2016
Focus on Healthcare: Affordable Care Act Reporting Deadline Extension for Forms 1094 and 1095
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The U.S. Treasury and Internal Revenue Service recently extended the 2015 Affordable Care Act (ACA) information reporting deadlines to give employers and payroll service providers more time to fulfill these requirements.
01/07/2016
Focus on Construction: Tax Deductions Restored
On December 18, 2015, Congress passed the Protecting Americans from Tax Hikes Act of 2015 or the PATH Act. This law includes several tax breaks that are beneficial to construction companies and homebuilders.
01/04/2016
Focus on R&E Tax Credits: Made Permanent with Improvements Coming in 2016
The Research & Experimentation Tax Credit, also referred to as the “R&E” or “Research” tax credit incentivizes companies to invest in people and technology that can lead to growth in revenues and profitability, as well as to promote job retention and expansion. The credit focuses on three types of expenditures: qualified wages, supply costs and contract research.
Since its inception in the 1980’s, the research credit (along with other so-called “tax extenders”) has existed on a renewable basis; usually for two years, but only for one year in 2014. This made it challenging for companies to track the eligible expenditures for the credit, since it was not known if the credit would be in place when it came time to file for it.
01/04/2016
Focus on Transportation & Dealerships: President Obama Signs 5-Year Highway Bill
On December 4, 2015, President Obama signed a five-year, $305 billion highway reauthorization bill that will reform a safety performance scoring program for motor carriers and pave the way for employers to rely on alternative testing to screen prospective drivers.
12/28/2015
Focus on Public Sector: Government Finance and Accounting
Within the last week, multiple events have occurred that will affect public sector entities nationwide. Notably, the Federal Reserve, displaying optimism with regards to the U.S. economy’s growth prospects, announced that it would be raising short-term interest rates for the first time since 2006.
12/23/2015
Focus on Not-For-Profits: IRS Proposal to Provide Social Security Numbers of Donors Causes Concern
An IRS Proposed Regulation issued in September concerning donor disclosure options for tax-exempt organizations has caused concern in the charitable giving world.
12/22/2015
Focus on Taxation: President Obama Signs Tax Extenders Bill
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 On Friday, December 18, President Obama signed into law the Protecting Americans from Tax Hikes (PATH) Act of 2015.
12/21/2015
Focus on Gaming: Q3 Revenues Set an All-Time High
Organic growth has pushed the gaming industry to record highs. The third quarter of 2015 produced $9.7 billion in gaming revenues which set an all-time high for quarterly gaming revenue performance.
12/09/2015
Denver Area Municipalities Show Considerable Economic Recovery
Denver area municipalities saw conditions improve significantly in 2014 as compared to 2013.
12/09/2015
Kansas City Area Municipalities Show Significant Growth in Past Year
Kansas City area municipalities saw conditions improve significantly in 2014 as compared to 2013 and 2012.
12/09/2015
St. Louis Area Municipalities’ Growth Falls Flat
St. Louis area municipalities saw a slowing down of economic recovery in 2014, with flat revenue growth and a minimal increase in average net position.
12/08/2015
Focus on Colleges & Universities: Cloud Computing Fees Impact on Higher Education
On April 15, 2015, FASB issued Accounting Standards Update 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, as part of its simplification initiative to reduce the diversity in practice, and to reduce the costs and complexity of assessing fees paid in a cloud computing arrangement (CCA).
12/07/2015
Focus on Taxation: 2015 Year-End Tax Planning
As we head into the last month of the calendar year, it is important to take note of the over 50 “temporary” individual and business tax provisions that have expired and may or may not be extended and retroactively reinstated before the end of the year.
12/04/2015
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Social Security: Changes Coming with the Bipartisan Budget Act of 2015
Since the passage of the Senior Citizens Freedom to Work Act of 2000, social security beneficiaries were allowed to employ the “File and Suspend” and “Restricted Application” strategies, either exclusively or in conjunction, to attempt to maximize their social security benefits. The Bipartisan Budget Act of 2015 contained changes to the Social Security program that eliminated these claiming strategies.
12/02/2015
Focus on Vendor Management: AICPA Changes to Test Vendor/Service Organization Security, SOC 2–What Service Organizations Need to Know
The American Institute of Certified Public Accountants (AICPA) recently released an updated Service Organization Controls (SOC®) 2 attest guide: Reporting on Controls at a Service Organizations Relevant to Security, Availability, Processing Integrity, Confidentiality, or Privacy (SOC® 2) July 1, 2015.
11/23/2015
Focus on Law Firms: The Current State of Law Firm Cybersecurity
A survey conducted by the American Bar Association (ABA) finds that attorneys are reporting more instances of security breaches within their information technology systems.
11/20/2015
RubinBrown Chairman Named Outstanding Visionary By Missouri Society of Certified Public Accountants
Castellano recognized for his achievements and leadership in the accounting profession
11/17/2015
RubinBrown and the CORTEX Innovation Community—1 Year Later
RubinBrown recently celebrated the one year anniversary of its CORTEX Innovation Community office opening. RubinBrown officially opened its satellite office at CIC in the @4240 building in October 2014.
10/27/2015
Focus on Assurance: Changes You’ll Note On Reviews & Compilations
The AICPA Accounting & Review Services Committee released new standards for accounting and review services, titled SSARS No. 21, Statement on Standards for Accounting and Review Services: Clarification and Recodification.
10/21/2015
Focus on Life Sciences & Technology: 2015 Venture Capital Investment - Third Quarter Update
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Venture capital (“VC”) investment experienced pull back in the third quarter, following an exceptional second quarter in 2015 and an overall remarkable year so far.
10/19/2015
Focus on Law Firms: The Growing Trend of Law Firm Mergers
In 2013, there were 88 mergers of law firms in the U.S. and that was the most on record at the time. Nearly two years later, law firm mergers and acquisitions continue at a record pace.
10/14/2015
Focus on Manufacturing & Distribution: Takeaways From the AICPA Manufacturing Conference
Partners Jim Mather and Russ White joined several hundred manufacturing industry professionals to gain additional insights and perspectives on the global manufacturing industry. The conference confirmed many of the economic opportunities and challenges that clients are facing today within the local, national and global markets.
10/05/2015
Focus on Life Sciences & Technology: Considerations for the Valuation of Early Stage Entities – Part 3
Part 3 of the series covers specific valuation approaches that can be utilized for early stage companies.
10/01/2015
Focus on Home Builders: News from NAHB’s Fall Board Meeting
RubinBrown recently attended the National Association of Home Builders (NAHB) Fall Board meeting as a member of the Business Management and Information Technology Committee held in Dallas. Some of our observations are highlighted.
09/29/2015
Focus on Gaming: Growth Continues Through the First Six Months of 2015
In the first and second quarters of 2015, the U.S. commercial gaming industry generated $19.18 billion, a 2.7 percent increase over the same six month period in 2014.
09/25/2015
Focus on Manufacturing & Distribution: Summits Summary
RubinBrown was the proud sponsor of the Manufacturing & Distribution Summits in St. Louis and Kansas City—August 26 & 27. Manufacturing and Distribution is an important industry to RubinBrown and we were very pleased to have several hundred clients and guests attend the event to hear from a great lineup of speakers. The following is a brief summary of the key points from the event.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 09/21/2015
Focus on Life Sciences & Technology: Highlights from the 2015 Ag Innovation Showcase
On September 14-16, 2015 the Donald Danforth Plant Science Center hosted the 2015 Ag Innovation Showcase. Here are the highlights we took away from the event.
09/11/2015
RubinBrown Names New Managers
RubinBrown Names New Managers
09/11/2015
RubinBrown Promotes Managers in Assurance Services Group
RubinBrown Promotes Managers in Assurance Services Group.
09/08/2015
Focus on Not-For-Profits: Membership Dues or Contributions?
Does your organization have members? Are you sure? You may be surprised to find out you really have contributors. But how can you tell the difference? The Financial Accounting Standards Board (FASB) comes to your rescue in its Accounting Standards Codification (ASC) for not-for-profit entities. FASB ASC 958-605-55, covering revenue recognition, provides implementation guidance and illustrations.
09/01/2015
RubinBrown Chairman & Wife Honored with Prestigious Rockhurst University Award
Castellano recognized for his contributions to the St. Louis and Rockhurst University communities.
08/28/2015
Focus on Public Sector: Additional Disclosures for Government Tax Incentives Now Required
On August 14, the Governmental Accounting Standards Board (GASB) issued Statement No. 77 (Statement 77), Tax Abatement Disclosures. The purpose of this statement is to provide financial statement users with further information related to a government’s tax abatement agreements.
08/28/2015
Key Takeaways from Attract Funding: Stand Out in Front of St. Louis Venture Capitalists
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 On Thursday, August 27, RubinBrown hosted a panel of St. Louis venture capitalists at Venture Café. Steven Harris, Partner-In- Charge of RubinBrown’s Entrepreneurial Services Group, facilitated a panel discussion featuring Jennifer Ehlen of Prosper Capital, Carter Williams from iSelect Fund, Kyle Welborn from Cultivation Capital and Scott Bernstein of Lewis & Clark Ventures.
The following are highlights from what was a great, interactive discussion.
08/26/2015
Focus on State and Local Taxation: Alabama Enacts Factor Presence Nexus Standard
Governor Bentley signed legislation establishing a factor presence nexus standard for business activity, effective for tax years beginning after December 31, 2014, for purposes of business privilege taxes, income taxes, and financial institution excise taxes.
08/25/2015
Focus on State and Local Taxation: Kansas Credit for Taxes Paid to Other States to Include Earnings Tax
Based on the recent Supreme Court Ruling, Comptroller of Treasury of Maryland v. Wynne, the Kansas Department of Revenue has advised the Kansas Legislature that they are now interpreting the Kansas Statute allowing credit for taxes paid to other states to include the Kansas City, Missouri earnings tax.
08/21/2015
Focus on Healthcare: CMS Issues Proposed Changes to Medicare Physician Fee Schedule
The Centers for Medicare & Medicaid Services (CMS) issued a proposed rule on July 8, 2015, updating payment policies, payment rates and quality provisions for services furnished under the Medicare Physician Fee Schedule (PFS) for calendar year 2016.
08/07/2015
Focus on Healthcare: Refresher on the Affordable Care Act and What's Required for 2015
As we head into the last of the year, it is important to understand and prepare for the employer reporting requirements of the Affordable Care Act. Many pivotal elements of this law went into effect at the beginning of 2014. While employer information reporting was optional for 2014, it will be mandatory for all applicable large employers starting in early 2016 for calendar year 2015.
To read the full article, please click here.
08/07/2015
Focus on State and Local Taxation: Nevada Commerce Tax Enacted and Modified Business Tax Amended
Governor Sandoval signed legislation enacting a commerce tax based on gross revenue assigned to the state of Nevada. This annually collected tax applies to entities engaged in business in Nevada who have over $4 million of Nevada gross revenue in the fiscal year of July 1st through June 30th.
08/07/2015
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Is the IRS Reclassifying Carried Interest?
Rules proposed by the agency would make it harder for firms to convert high-taxed fees into lower-taxed carried interest, and by doing so take advantage of a 19.6 percentage-point difference in top tax rates.
To read the full article, please click here.
08/07/2015
JOIN US! UPCOMING EVENTS & SEMINARS
2015 Manufacturing & Distribution Summit | 8.26.15 (St. Louis), 8.27.15 (Kansas City) RubinBrown is proud to host the Manufacturing & Distribution Summit in St. Louis and Kansas City on August 26th and 27th. This year's event will feature several nationally recognized keynote speakers:
Pat Panchak, Editor in Chief, Industry Week Magazine
Robert Miller, Former Executive Director of the Shingo Institute
Chris Kuehl, an economist and Managing Director of Armada Corporate Intelligence
For more information and to register, please click here.
2015 Business Summit | 9.24.15 (Denver) We will discuss the following topics and trends:
How to Prevent Your Employees' Rocky Mountain High From Turning Into Your Company's Rocky Mountain Headache: The Impact of Colorado's Marijuana Laws on Employers and the Workforce - Lino Lipinsky de Orlov, Partner, Dentons
Cyber Security: How to Protect Your Business - Rob Rudloff, Partner, RubinBrown
R&E Tax Credits - Rich Pickett, Manager, RubinBrown
Important State and Local Updates for Your Business - Rhonda Sparlin, Partner, RubinBrown
Economic Overview for the M&D Industry in Colorado - Harry Horowitz, Senior Industry Manager - Advanced Industries, Office of Economic Development and International Trade
For more information and to register, please click here.
More Upcoming Events & Seminars Click here for a full listing of all upcoming RubinBrown events and seminars.
08/07/2015
New Revenue Recognition Standard Deferred
During its July meeting, the FASB voted to approve a one-year deferral of the effective date of ASU 2014-09, Revenue from
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Contracts with Customers. The FASB expects to issue its final ASU formally amending the effective date by the end of the third quarter of 2015. As a result of this deferral, ASU 2014-09 will be effective for a nonpublic entities for annual periods beginning after December 15, 2018 and interim periods within annual periods beginning after December 15, 2019. Early adoption will be permitted but not earlier than the original effective date for public entities which is for annual periods beginning after December 15, 2016.
08/07/2015
Simplifications to Accounting for Employee Stock Compensation
The Financial Accounting Standards Board (FASB) has issued a proposed Accounting Standards Update (ASU) for improvements to employee share-based payment accounting. The areas for simplification in this proposal involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The effective date will be determined after stakeholder feedback on the proposal is considered. Comments are due August 14, 2015.
08/07/2015
Your Company Can Qualify for R&E Tax Credits and You May Not Know It
"We don't have scientists wearing white lab coats using beakers and test tubes. Improving our products and processes is a normal part of our company culture. How can this be research?"
This is a common reaction when introducing the Research and Experimentation (R&E) tax credit to companies. However, changes to the tax credit have effectively lowered the “innovation bar” to where it only has to be new to the company.
To read the full article, please click here.
08/06/2015
Focus on Valuation: Proposed Regulations May Limit Valuation Discounts for Interests in Family-Controlled Entities
Recent developments suggest that the IRS has once again prioritized its intent to limit the tax benefits afforded to FLPs and LLCs when transferring minority interests amongst family members.
08/05/2015
Focus on Taxation: Accelerated Deduction Opportunities
Have you addressed the requirements and evaluated the related opportunities afforded to your business under the Tangible Property Regulations (TPRs)?
07/30/2015
Focus on Life Sciences & Technology: 2015 Venture Capital Investment - Second Quarter Update
Venture capital (VC) investment experienced the strongest quarter in terms of dollars invested since the fourth quarter of 2000, after an exemplary first quarter and an overall remarkable 2014 as both dollars invested and number of deals reached levels not seen in over a decade.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 07/29/2015
King Joins RubinBrown
RubinBrown recently added Rachelle King as a manager.
07/29/2015
RubinBrown Promotes Managers in Business Advisory Services Group
RubinBrown recently promoted Jeff Barnes, CFA, CFE, Josh Leesmann and Brent Wartick, CPA, to manager positions.
07/24/2015
Focus on State and Local Taxation: Kansas Tax Amnesty Program
Kansas has enacted a 2015 tax amnesty program. This program provides amnesty for all penalties and interest on unpaid taxes through December 31, 2013, if paid in full during the amnesty period of September 1, 2015 through October 15, 2015.
07/23/2015
Focus on Gaming: RubinBrown Published in Casino Journal - First Quarter Review
RubinBrown's Gaming Services team published its most recent industry update in the July edition of Casino Journal, a leading gaming industry trade journal. The update explains in depth why the calm winter and reviving economy yield strong first quarter commercial gaming revenue numbers.
07/21/2015
Focus on Public Sector: GASB Releases Exposure Draft on Accounting For Irrevocable Split-Interest Agreements
On June 2 the GASB issued an exposure draft that provides guidance for irrevocable split-interest agreements. Split-interest agreements are a specific type of giving arrangement used by donors to provide resources to two or more beneficiaries, including governments. Split-interest agreements can be created through trusts or equivalent arrangements under which a donor transfers resources to an intermediary to hold and administer for the benefit of the government and at least one other beneficiary.
07/20/2015
RubinBrown Practice Leader Recognized With Young Leader Award
Daniel Holmes, CPA, a practice leader for accounting firm RubinBrown’s national gaming practice, was named one of the St. Louis Business Journal’s 30 Under 30.
07/17/2015
Focus on Construction: Update From the AGC Meeting
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 RubinBrown’s Construction Services Group recently attended the National Associated General Contractors’ (AGC) Financial Issues Committee meeting in Colorado Springs, Colorado.
An economic update provided by Ken Simonson, the AGC’s chief economist noted that jobs continue to be added in every segment of both residential and nonresidential construction with growing demand for both public and private sector services.
07/16/2015
RubinBrown Promotes New Managers
RubinBrown recently promoted Leslie Bittle, CPA, and Sheila Sharples, CPA, to manager positions.
07/15/2015
Focus on State and Local Taxation: Missouri Legislative Update
On July 6, 2015 Governor Nixon signed several bills into law, House Bills 517, 613, 616 and Senate Bill 18. This legislation amends a variety of tax provisions.
07/14/2015
RubinBrown Promotes Colleen McDole, CPA, to Manager
& RubinBrown, LLP, one of the nation’s top 50 accounting and business consulting firms, is proud to announce the promotion of Colleen McDole, CPA, to manager in the Kansas City office.
07/14/2015
RubinBrown Promotes Patrick Amos, CPA, to Manager
RubinBrown, LLP, one of the nation’s top 50 accounting and business consulting firms, is proud to announce the promotion of Patrick Amos, CPA, to manager in the Kansas City office.
07/14/2015
RubinBrown Promotes Tizzi Blackburn, CPA, to Manager
RubinBrown, LLP, one of the nation’s top 50 accounting and business consulting firms, is proud to announce the promotion of Tizzi Blackburn, CPA, to manager in the Kansas City office.
07/09/2015
Focus on State and Local Taxation: Indiana Tax Amnesty Program
Governor Pence recently signed a bill creating a tax amnesty program. This program provides amnesty for penalties, interest, and other collection fees, as well as, the release of tax liens, and protection from civil or criminal prosecution on unpaid taxes through
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 December 31, 2012, if paid in full during the amnesty period of September 15, 2015 through November 16, 2015.
07/07/2015
Focus on Public Sector: GASB Issues Statements Significantly Modifying Financial Reporting for Other Post-Employment Benefits (OPEB)
While the implementation of Governmental Accounting Standards Board (GASB) Statement No. 68 (Statement 68), Accounting and Financial Reporting for Pensions, is currently top-of-mind for many governments this year, the GASB continues to issue new statements that also will significantly impact financial reporting for governments. In particular, two recent statements addressing other post-employment benefits (OPEB) will dramatically change the way that OPEB is accounted for and presented within governmental financial statements.
07/01/2015
RubinBrown Introduces Matt Hartman, CFP, to Kansas City’s Wealth Management Services Group
RubinBrown, LLP, welcomes Matthew Hartman, CFP®, to the firm’s Kansas City office, effective July 1.
06/30/2015
Focus on Transportation & Dealerships: Don’t Think You’re too Small to be Targeted by Cyber Attacks
According to the 2015 Cost of Data Breach Study by the Ponemon Institute, more than 70% of all breaches last year were caused by malicious attacks or human error. Many of these were simple mistakes made by employees unaware of what they were doing.
06/29/2015
Focus on State and Local Taxation: Tennessee Revenue Modernization Act
On May 20, 2015, Governor Bill Haslam signed the Revenue Modernization Act. The Act expands the definition of nexus, changes sourcing rules for franchise and excise tax purposes, places greater weight on the sales factor for franchise and excise tax purposes, and makes other changes.
06/24/2015
Focus on State and Local Taxation: Kansas Tax Changes
Kansas lawmakers have enacted broad tax law changes to balance the state’s $400 million budget shortfall. Below is a summary of the tax plan passed, which passed in two different bills, H.B. 2109 and S.B. 270, effective July 1, 2015 and applicable as noted.
06/23/2015
Missouri Society of CPAs Appoints RubinBrown Partner to Board
Audrey Katcher, CPA, CISA, CITP, a partner in RubinBrown’s Business Advisory Services Group, was elected to the Missouri Society of Certified Public Accountants Board of Directors. Katcher will serve a three-year term, beginning July 1.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 06/17/2015
Focus on Healthcare: Refresher on the Affordable Care Act and What’s Required for 2015
As we head into the last half of the year, it is important to understand and prepare for the employer reporting requirements of the Affordable Care Act. Many pivotal elements of this law went into effect at the beginning of 2014. While employer information reporting was optional for calendar year 2014, it will become mandatory for all applicable large employers starting in early 2016 for calendar year 2015.
06/11/2015
Focus on Not-For-Profits: FASB’s Proposed Changes to the Not-for-Profit Financial Statement Reporting Model
On April 22, 2015, FASB issued an exposure draft of proposed accounting standards updates that would substantially revise the format and content of the financial statements of not-for-profit organizations, which can be grouped into four broad categories: net asset classification, statement of activities presentation, statement of cash flow presentation or liquidity information.
06/11/2015
RubinBrown Promotes Massaro to Partner
RubinBrown recently named Natalie Massaro, CPA, to partner in its Tax Services Group.
06/09/2015
Focus on Gaming: Active Cyber Security Threats
Hotels, casinos and resorts are increasingly targeted by cyber criminals using a variety of means to access private data. Recent communications from the FBI indicate Point of Sale (POS) malware is still a significant threat and cyber criminals are using this attack method to infect networks, extract data, and quickly sell the data on cyber criminal markets.
06/09/2015
RubinBrown Names Grimes, Lofgren and Stranghoener as Partners
RubinBrown has promoted Jim Grimes, CIA, CFE, Mary Kay Lofgren, CPA, and Eric Stranghoener to partner.
06/08/2015
Focus on Law Firms: Ransomware is on the Rise
Ransomware is increasingly targeting law firms and the number of victims around the world is growing. Recent news articles state more than 600,000 victims worldwide have been infected.
06/05/2015
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Healthcare: All Healthcare Organizations Are Targets of Cyber Breaches
The largest healthcare security breaches lately have been at payer organizations (e.g., Anthem). The recently announced Beacon Health System breach of 220,000 patient records is evidence that providers are equally targeted. In fact, providers are targeted far more often as cyber criminals go after providers large and small in order to gain access to personally identifiable information and personal healthcare information.
06/03/2015
Focus on Transportation & Dealerships: Bigger, Better, Faster - Fleet Telematics
Technology and the way its used is constantly and rapidly changing. With these changes come new trends. Fleet telematics are no exception as the technological advances make the possibilities seem endless.
06/02/2015
Focus on State and Local Taxation: Oklahoma Tax Amnesty Program
Governor Fallin recently signed a bill creating a tax amnesty program. This program provides amnesty for penalties, interest, and other collection fees on unpaid taxes through December 31, 2014, if paid in full during the amnesty period of September 14, 2015 through November 13, 2015.
06/02/2015
RubinBrown Names New Partners in Tax Services Group
RubinBrown recently named Peter Aje, CPA, and Jason McAdamis, CPA, to partner in its Tax Services Group.
06/01/2015
RubinBrown Promotes Chester Moyer, CPA, to Partner
RubinBrown, LLP, one of the nation’s top 50 accounting and business consulting firms, is proud to announce the promotion of Chester Moyer, CPA, to partner in the Kansas City office, effective June 1.
06/01/2015
RubinBrown Promotes Suzy Kimbrough, CPA, to Partner
RubinBrown, LLP, one of the nation's top 50 accounting and business consulting firms, recently promoted Suzy Kimbrough, CPA, to partner in the Kansas City office, effective June 1.
05/20/2015
Focus on Life Sciences & Technology: Considerations for the valuation of early stage entities – Part 2
In Part 1, we talked about what questions should be answered to help frame the valuation. Identifying the purpose, perspective,
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 and audience will help you establish the type of valuation needed and the appropriate level of effort.
05/18/2015
Focus on Healthcare: Employers with UNDER 50 FTE’s: June 30, 2015 ACA Deadline
For employers with under 50 full time equivalents, June 30, 2015 is the deadline for transitioning employees over to the SHOP marketplace or other insurance that meets the market reform requirements of the Affordable Care Act.
05/13/2015
Focus on State and Local Taxation: Missouri Tax Amnesty Program
Governor Nixon recently signed a bill creating a tax amnesty program and other tax provisions. This program provides amnesty for penalties, additions to tax and interest on unpaid income, sales, withholding, and franchise taxes through December 31, 2014, if paid in full during the amnesty period of September 1, 2015 through November 30, 2015.
05/12/2015
Focus on State and Local Taxation: Single-Sales Factor Election Available to all Missouri Taxpayers
Governor Nixon, on May 6, 2015, signed into law Senate Bill 19 which clarified an existing statute to allow all Missouri companies, including those receiving income from sources other than the sale of tangible personal property, to use the single-sales factor apportionment election enacted in July 2013.
05/05/2015
National Accounting Firm RubinBrown Expands Into Nashville
RubinBrown announced the opening of a new office, effective June 1, in Nashville, Tenn.
04/30/2015
Focus on Life Sciences & Technology: 2015 Venture Capital Investment - First Quarter Update
Venture capital (“VC”) investment experienced pull back in the first quarter, following an exceptional 4nd quarter last year and an overall remarkable 2014 as both dollars invested and number of deals reached levels not seen in over a decade (see our 2014 Venture Capital Investment: Year in Review). According to the PricewaterhouseCoopers / National Venture Capital Association MoneyTree™ Report, VC activity in the United States decreased about 10% in the first quarter of 2015 to $13.4 billion, down from $14.9 billion in the fourth quarter of 2014. Although, a substantial decrease from the fourth quarter, market participants can still be optimistic as activity in the first quarter is up 26% year-over-year.
04/28/2015
Focus on Transportation and Dealerships: No Tax Homes for Long-Haul Truck Drivers
The United States Tax Court recently upheld the Internal Revenue Service’s (IRS) determination that a long-haul truck driver could
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 not deduct unreimbursed travel expenses because he was not away from home, as he did not have a tax home.
04/28/2015
RubinBrown Adds New Manager
Bruce Welikson, CMA, recently joined RubinBrown, as a tax manager. John Herber, CPA, managing partner, made the announcement.
04/23/2015
Focus on Not-For-Profits: FASB Issues Exposure Draft on Presentation of Financial Statements of Not-for-Profit Entities
On April 22, 2015, the Financial Accounting Standards Board (FASB) issued a proposed Accounting Standards Update, Presentation of Financial Statements of Not-for-Profit Entities.
04/20/2015
US Gaming Industry Reaches Record High Revenues; Number of Commercial Casinos Declines
New gaming study by RubinBrown indicates revenue growth is largely attributed to growth in iGaming and limited stakes segments
04/14/2015
RubinBrown Leader Quoted in Journal of Accountancy Article On Private Company Financial Reporting
RubinBrown's Director of Quality of Control David Duckwitz provides insights into private company financial reporting in a recent article that appeared in the Journal of Accountancy.
04/09/2015
RubinBrown Adds New Managers
Ryan, Steepleton and Wenzelman recently joined RubinBrown, as managers.
04/03/2015
Focus On Revenue Recognition: FASB Votes To Propose Deferring Effective Date Of ASU 2014-09
The Financial Accounting Standards Board (FASB) has voted to propose deferring the effective date for the new revenue recognition standard established by Accounting Standards Update (ASU) 2014-09. This deferral would apply to both public and nonpublic entities.
04/01/2015
RubinBrown Promotes Brown
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Brown recently was named a manager in RubinBrown's Tax Services Group.
03/23/2015
RubinBrown Launches New Cyber Security Advisory Services
New cyber security advisory national practice led by information security expert, Rob Rudloff.
03/17/2015
RubinBrown Forms New Research & Experimentation Tax Credit Practice
RubinBrown recently formed a new Research & Experimentation Tax Credit Practice. Richard Wile, CMBA, partner, and Richard Pickett, manager, will lead the group.
03/06/2015
Focus on Healthcare: Supreme Court Hears Arguments in Affordable Care Act Subsidies Case
This week the Supreme Court heard arguments in King v. Burwell, a case centered on the issue of the constitutionality/legality of insurance premium subsidies received by individuals purchasing health insurance on the federally run health insurance exchange.
02/27/2015
Focus on Manufacturing & Distribution: Final Tangible Property Regulations in Relation to Property Tax
The Final Tangible Property Regulations address a broad range of capitalization and deduction issues related to tangible property that will impact almost all industries with tangible property, whether owned or leased, including manufacturing and distribution. Specifically, the new rules may provide state and local tax planning opportunities to the manufacturing and distribution industry.
02/24/2015
Focus on Taxation: Time Sensitive Opportunity - Work Opportunity Tax Credit (WOTC) Extension for 2014
The IRS recently issued guidance and transition relief with Notice 2015-13 for those employers claiming the WOTC through December 31, 2014. The WOTC is a Federal credit for employers that hire individuals from specific targeted groups.
02/19/2015
Focus on Healthcare: New Guidance on Health Coverage Reimbursement Including Employers Increasing Employee Compensation to Allow Employees to Purchase Health Insurance
IRS, DOL, HHS issue further guidance on certain health coverage reimbursement arrangements – including guidance on rules around employers increasing employee compensation to allow employees to purchase their own health insurance.
02/05/2015
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Not-For-Profits: Private Foundations Must Meet the 5% Annual Distribution Requirement While Ensuring the Long-Term Viability of Their Investment Portfolios
Private foundations face a challenge that other foundations and not-for-profit organizations do not. Perhaps the most significant of these is the requirement that private foundations distribute 5% of the fair market value of their assets each year.
02/02/2015
Focus on Life Sciences & Technology: Considerations for the Valuation of Early Stage Entities – Part 1
You’ve probably heard this before, but valuation is both an art and a science. The type of asset, the nature of the valuation, and the purpose of the valuation will dictate how much of that blend is weighted towards art or science.
01/29/2015
Focus on Manufacturing & Distribution: Tangible Property Regulations
All taxpayers that have capital expenditures or incur repair and maintenance costs are impacted by the tangible property regulations that were finalized in September of 2013. These regulations provide guidance regarding the capitalization of the costs to acquire, maintain or improve tangible property and are effective for tax years beginning on or after January 1, 2014.
01/28/2015
Focus on State & Local Taxation: Delaware Franchise Tax May be Reduced by Using Alternative Calculation
Corporations formed in Delaware, regardless of where headquartered or operating, are subject to an annual franchise tax for the privilege of being incorporated in the state.
01/26/2015
Focus on Construction: News & Notes from the International Home Builders Show
Judging by the nearly 125,000 people in attendance at the Home Builders International Builders Show, the home building industry is on its way back to recovery.
01/23/2015
Michael Fox, CPA, Named 2015 KC Business Rising Star Honoree
RubinBrown is proud to announce Michael Fox, CPA, a manager in RubinBrown’s Assurance Services Group, was named a 2015 KC Business magazine Rising Star honoree. As one of 30 honorees, Fox will accept the award at the Rising Stars award ceremony at the Vox Theatre in Kansas City, Kansas, on Thursday, Feb. 5, 2015.
01/22/2015
Focus on Life Sciences & Technology: 2014 Venture Capital Investment - A Year in Review
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Venture capital activity soared in 2014, with both deals and dollars reaching levels not seen in over a decade.
01/20/2015
JOIN US! UPCOMING EVENTS & SEMINARS
2015 AM&AA Winter Conference Join our private equity leaders as well as other M&A professionals in Las Vegas for the 2015 AM&AA Winter Conference entitled Evolve: Monetizing Opportunities in Today's Market. Be a part of this year's most anticipated industry event for a program that connects 500+ dealmakers representing countries all over the world.
For more information and to register, please click here.
Lessons Learned - A Conversation with Tom Stillman (St. Louis) | 2.5.15 Tom will discuss the process of building Summit Distributing, from an initial acquisition in 1994 to the present day. Tom will also discuss his experience with the St. Louis Blues, from assembling an investment group to navigating the acquisition process to operating the franchise. Tom will devote a substantial portion of his time to questions from the audience.
For more information and to register, please click here.
Valuing Businesses for Acquisitions or Sales | 2.10.15 (Kansas City), 2.11.15 (Denver), 2.12.15 (St. Louis) Hopefully you were able to join us for our "Business Exits and Acquisitions: Considerations for Successful Outcomes" seminar that was held in 2014 and learned the process for buying/selling businesses. Now that you understand the process for buying/selling, the next step is to understand how to determine the value.
For more information and to register, please click here.
More Upcoming Events & Seminars Click here for a full listing of all upcoming RubinBrown events and seminars.
01/20/2015
Simplifying Business Combinations
The Financial Accounting Standards Board (FASB) has issued an update that provides an alternative for private companies on accounting for intangible assets acquired in a business combination. Many customer-related intangible assets, because they are not capable of being sold or licensed independently from the other assets of the business, would not be separately recognized under this accounting alternative. However, some customer-related intangible assets that are capable of being sold or licensed independently would continue to be separately recognized.
To read the full article, please click here.
01/20/2015
Spotlight on Healthcare M&A in the Middle Market
Healthcare is a huge part of the U.S. economy – almost $3 trillion and approaching 20 percent of GDP – and historically has been growing. It consists of several sectors, each of which has several segments, the majority of which are quite fragmented and
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 comprised of mostly private companies. So, why doesn't every generalists private equity firm and middle market lender expand into healthcare?
To read the full article, please click here.
01/16/2015
Focus on Construction: Update From the AICPA Construction Industry Conference
RubinBrown’s Construction Group recently attended the AICPA’s Construction Industry Conference in Las Vegas, NV. The annual conference focused on instructive guidance for CPA’s in public practice, CFO’s, controllers and other construction industry specialists.
01/12/2015
Focus on Manufacturing & Distribution: Unique Opportunities with UNICAP for 2014 Tax Returns
In recent years, the IRS has dramatically stepped-up its examination activity around the Uniform Capitalization of Inventory rules (UNICAP). Most taxpayers in the manufacturing and distribution industries can benefit from a UNICAP review to proactively identify potential UNICAP exposures before the IRS has a chance to do so upon exam.
01/09/2015
Focus on Law Firms: Tax Implications for New Partners
The end of the calendar year usually coincides with an important time in many law firms – partner promotions. In law firms structured as partnerships, newly promoted partners can expect their tax situation to change for the 2015 filing year. This is primarily due to the way partnerships report income and how the income “flows through” to partners of the firm.
01/07/2015
Focus on Taxation: What To Do If You Receive Correspondence From a Foreign Bank Asking for Personal Information
Many RubinBrown clients with bank accounts or other financial assets offshore have been receiving correspondence from the institutions holding those assets asking for personal information such as US social security numbers. This article covers why you may receive these letters and what to do after you receive one.
12/29/2014
Focus on Private Company Financial Reporting: FASB Issues Accounting Standards Update for Private Companies
The Financial Accounting Standards Board (FASB) has issued an update to U.S. Generally Accepted Accounting Principles that provides an alternative for private companies on accounting for intangible assets acquired in a business combination.
12/18/2014
Focus on Construction: Update From the Joint AGC/CFMA National Conference
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 RubinBrown’s Construction Group recently attended the Joint AGC/CFMA National Conference in Las Vegas, NV.
12/18/2014
Focus on Not-For-Profits: Protecting Your Religious Organization Against Fraud and Abuse
Despite numerous reports of fraud and abuse, most religious organizations are reluctant to admit that they could find themselves a victim of fraud by one of their own members or employees.
Religious institutions strive to build a trusting relationship with their members and employees that are built on the foundation of religious beliefs. This environment, coupled with tight budgets and limited financial oversight, makes religious organizations particularly vulnerable to fraud.
12/18/2014
Focus on Taxation: One Year Extenders Package
On December 19, the President signed into legislation the Tax Increase Prevention Act of 2014. The package includes provisions that extend for one year retroactively to January 1, 2014 and through December 31, 2014, some 54 expired tax provisions.
12/15/2014
Focus on Healthcare: New Guidelines Issued Regarding Employer Compliance with Affordable Care Act
Recently, the United States Department of Labor (DOL), the Internal Revenue Service (IRS) and the Department of Health and Human Services (DHHS) issued new guidance to deter implementation of certain strategies being marketed to employers that reduce costs associated with complying with the requirements of the Affordable Care Act.
12/12/2014
Focus on Life Sciences & Technology: Implement IP Best Practices As You Turn Innovation Into Commercialization
Turning intellectual capital, i.e., what’s in your brain, into intellectual property (“IP”), i.e., a legally protected, transferable asset is not cheap. Organizations invest time, focus and capital to protect innovation through patents, trade secrets and other means.
12/02/2014
Focus on Construction: News From the CFMA Heartland Conference
RubinBrown’s Construction Services Group recently attended the Construction Financial Management Association (CFMA) Heartland Conference in Council Bluffs, Iowa.
There was a busy slate of speakers at the conference covering a range of topics including technology innovation within the construction industry, creating an innovative workplace, and key performance metrics for construction companies.
12/01/2014
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Taxation: Reminders for Year-End Charitable Gifts
The Internal Revenue Service (in IR-2014-110) recently reminded individuals and businesses making year-end gifts to charity that several important tax law provisions have taken effect in recent years.
11/24/2014
RubinBrown Adds Wile and Pickett to Lead New Research & Experimentation Tax Credit Practice
Richard Wile, CMBA, recently joined RubinBrown as partner. In addition, the firm added Richard Pickett as manager. Both Wile and Pickett will lead RubinBrown’s new Research & Experimentation Tax Credit Practice. John Herber, CPA, managing partner, made the announcement.
11/21/2014
Brandon Loeschner Recognized for Outstanding Public Service
Loeschner awarded with the Missouri Society of Certified Public Accountants’ 2014 Outstanding Public Service Award
11/20/2014
Sharon Latimer, CPA, Nominated for KSCPA's 2014 Women to Watch Awards
RubinBrown is proud to announce Sharon Latimer, CPA, partner in RubinBrown's Assurance Services Group and recipient of KC Business magazine's esteemed 2014 Most Influential Women award, is a nominee for the Kansas Society of CPA's Fifth Annual AICPA/KSCPA Women to Watch awards.
11/14/2014
Focus on Fraud & Forensics: RubinBrown Joins Movement to Shine a Spotlight on Fraud
Fraud costs organizations worldwide an estimated 5% of their annual revenues, according to a study conducted by the Association of Certified Fraud Examiners (ACFE). If applied to the 2013 estimated Gross World Product, this translates to a potential projected global fraud loss of nearly $3.7 trillion.
11/13/2014
Auto Dealer Confidence Remains High
Survey examines current and future state of industry
11/13/2014
Focus on Taxation: 2014 Year-End Tax Planning
Year-end tax planning for 2014 must consider many important “temporary” tax provisions that have expired and may not be retroactively reinstated and extended before the end of the year. With the election now passed, Congress may or may not act to
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 extend or reinstate various beneficial tax provisions.
11/13/2014
RubinBrown Selected to Perform Life Sciences Census Project
Heartland Civic Collaborative selects RubinBrown to perform a census of life science assets in the four state region
11/11/2014
Rentals: The Wave of the Future?
Multifamily market primed to perform strongly in coming years
11/11/2014
RubinBrown Hires New Chief Information Officer
RubinBrown recently added Rob Lewis as its Chief Information Officer
11/10/2014
St. Louis Area Municipalities Show Slow Economic Recovery
Annual public sector survey by RubinBrown indicates continued recovery but at a much slower pace
11/04/2014
Focus on Law Firms: Recouping Investments in Your Information Technology Department
Increasing information security of sensitive data is a topic that is resonating throughout the legal profession. The growing rate of attorneys electronically transmitting and maintaining sensitive information increases a law firm’s risk surrounding its information security and controls. This risk factor is becoming a principal concern within the legal profession.
11/03/2014
Private Company Council Reaches Final Consensus Related To Intangible Assets Acquired In A Business Combination
The Private Company Council has voted to send an accounting alternative that would simplify the accounting for intangible assets acquired in a business combination to the Financial Accounting Standards Board (FASB) for endorsement.
10/23/2014
Focus on Life Sciences & Technology: 2014 Venture Capital Investment Q3 Update
Venture capital (“VC”) investment experienced pull back in the third quarter, following an exceptional second quarter and a robust
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 first half of 2014. According to the PricewaterhouseCoopers / National Venture Capital Association MoneyTree™ Report, VC activity in the United States decreased about 24% in the third quarter to $9.9 billion, down from $13.0 billion in the second quarter.
10/23/2014
Focus on Not-For-Profits: Consolidation Considerations
As competition has increased in attracting donor funding, many not-for-profit organizations have looked to create separate partnerships and ventures in order to better serve their constituents. When these new entities are created, organizations must evaluate whether generally accepted accounting principles require these entities to be consolidated for financial statement presentation. Whether a not-for-profit should consolidate a related entity depends on two factors: economic interest and control.
10/22/2014
Focus on Transportation and Dealerships: Report of Cash Payments Over $10,000
Each person engaged in a trade or business that, in the course of that trade or business, receives more than $10,000 in cash in one transaction or in two or more related transactions, must file Form 8300.
10/06/2014
Focus on Transportation and Dealerships: Illinois Criminal Background Checks
A new Illinois law prohibits employers from inquiring into a prospective employee’s criminal background on its application or during the early stages of application review.
10/03/2014
RubinBrown to Open Office at New St. Louis Cambridge Innovation Center
CIC@4240 Duncan is CIC’s first expansion outside of its Cambridge, Massachusetts-headquarters
09/24/2014
Focus on Life Sciences: RubinBrown Selected To Perform Life Sciences Census Project
RubinBrown is proud to announce that it has been selected by the Heartland Civic Collaborative (“HCC”), in collaboration with BioKansas, Bio Nebraska, BioSTL, IowaBio, Kansas City Area Life Sciences Institute, Inc., and MOBIO, to perform a census of life science assets in the four state region comprised of Iowa, Kansas, Missouri, and Nebraska.
09/23/2014
Focus On Going Concern Uncertainties: FASB Issues Accounting Standards Update
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The ASU is intended to define management’s responsibility to evaluate whether there is substantial doubt
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 about an entity’s ability to continue as a going concern and to provide related footnote disclosures.
09/22/2014
Fund Specialization Increases As Capital Floods Private Equity Asset Class
After five years of declining market share, private equity funds offered by new management teams are popular again. A poll carried out this summer among private equity professionals found that 89 percent believe increasing specialization is the future of private equity.
To read more, please click here.
09/22/2014
JOIN US! UPCOMING EVENTS & SEMINARS
Understanding and Implementing the Tangible Property Regulations (Denver) | 10.21.14 This seminar will focus on areas of the new laws important to tax directors and CFOs. RubinBrown's tax experts will provide in depth analysis on the tangible property regulations with emphasis on compliance requirements and tax savings opportunities.
For more information and to register, please click here.
Business Exits and Acquisitions: Considerations for Successful Outcomes (Kansas City) | 10.29.14 You have worked hard to build your business. If you have ever thought about selling your business or acquiring another, you've realized this can be a complex endeavor with seemingly endless questions. Join us for this informative seminar to learn more about selling and buying businesses.
For more information and to register, please click here.
2014 International Business Summit | 10.31.14 In order to remain competitive in today’s marketplace, businesses are looking internationally for new and sustainable growth opportunities. The global marketplace has become more interconnected, efficient, and robust with more potential than in any other time in history.
To assist St. Louis businesses in this effort, RubinBrown is hosting the 2014 International Business Summit to help companies navigate the landscape when considering expansion internationally and learn from experts who have extensive international business experience.
Headlining this event as our keynote presenter is Steve Burrows, former CEO of Anheuser-Busch International. Steve will discuss his experiences with expanding business both domestically and internationally.
RubinBrown has also invited Baker Tilly International leaders in our global economy’s fastest growing international markets to discuss the trends in international business as well as key considerations in establishing businesses abroad.
RubinBrown, St. Louis’ largest independent accounting firm, is an independent member of Baker Tilly International, the world’s 8th largest accounting network.
Baker Tilly International Chairman Jim Castellano will moderate an enlightening discussion on expanding business overseas, including investment incentives.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Jim will be joined with leaders from our Baker Tilly International network from the following countries: Brazil, China, Germany, Ireland and Mexico.
For more information and to register, please click here.
More Upcoming Events & Seminars Click here for a full listing of all upcoming RubinBrown events and seminars.
09/22/2014
Leverage's Short Term Memory...Or Not?
Are we in another bubble that will come to no good end? Randy Schwimmer, one of the world's leading authorities on the private debt markets, believes that there is far less short term leverage in the market today than there was in 2007, with many of the investors having arranged funding lines that go out as long as ten years. The presence of longer term money in the market could have very beneficial effects in terms of avoiding a repeat of 2007.
To read the full article, please click here.
09/22/2014
New Tax Regulations Create Significant Tax Savings Opportunities
All taxpayers that have capital expenditures or incur repair and maintenance costs will be impacted by the tangible property regulations that go into effect for tax years beginning on or after January 1, 2014. Savvy taxpayers will in many cases be able to utilize these regulations to realize significant tax savings.
To learn more, please click here.
09/22/2014
Purchase Price Allocations One Step Closer To Being Simplified
The Private Company Council (PCC) has finalized the accounting for identifiable intangible assets in PCC Issue No. 13-01A, “Accounting for Identifiable Intangible Assets in a Business Combination”. A final Accounting Standards Update (ASU) will be prepared for FASB endorsement. If endorsed by the FASB, the amendments in the ASU would be effective for business combinations entered into in the first annual period beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. Early application would be permitted.
The amendments in the ASU would state that an entity would not recognize in a business combination the following intangible assets: (a) non-competition agreements; and (b) customer-related intangible assets that are not capable of being sold or licensed independently from the other assets of a business.
09/22/2014
Watch Your Inbox for the Debut of RubinBrown’s M&A and Private Equity Update
Coming soon, this semi-annual publication will provide an overview of the M&A markets, from both a strategic and private equity perspective. Additionally, an industry will be highlighted and a spotlight feature on a private equity firm will round out the newsletter.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 09/10/2014
Focus on Healthcare: Federal Appeals Courts Issue Conflicting Rulings on Healthcare Law
Recently, two federal courts (Court of Appeals for the District of Columbia and Court of Appeals for the Fourth Circuit in Richmond, Virginia) issued conflicting rulings with respect to whether consumers who meet certain income criteria can continue to receive government subsidies for health care coverage bought on the Affordable Care Act’s federal exchange.
09/09/2014
Focus on Public Sector: GASB OPEB Exposure Drafts
The Governmental Accounting Standards Board (GASB) intends to make sweeping changes to the way governments account for other-post employment benefits (OPEB), similar to GASB’s recent changes to the way governments account for pension plans.
09/08/2014
Focus on Law Firms: Tangible Property Regulations – Time for Action
All taxpayers that have capital expenditures or incur repair and maintenance costs will be impacted by the Tangible Property Regulations that go into effect for tax years beginning on or after January 1, 2014.
09/05/2014
RubinBrown Founder Mahlon Rubin Has Died
It is with deep sadness that RubinBrown reports the passing of one of our firm’s founders, Mahlon Rubin.
08/25/2014
Focus on Taxation: Significant Tax Savings Opportunities with the Tangible Property Regulations
All taxpayers that have capital expenditures or incur repair and maintenance costs will be impacted by the tangible property regulations that go into effect for tax years beginning on or after January 1, 2014.
08/22/2014
Focus on Transportation and Dealerships: Tangible Property Regulations – Time for Action
All taxpayers that have capital expenditures or incur repair and maintenance costs will be impacted by the Tangible Property Regulations that go into effect for tax years beginning on or after January 1, 2014. For calendar year taxpayers, the last quarter of 2014 is a great time to take action to make the changes required by the Regulations and take advantage of opportunities that they provide.
08/12/2014
Focus on Life Sciences & Technology: Internal Controls
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 As your start-up or early stage company grows, and you begin adding team members to the employee roster, it is worth considering your internal control environment to ensure that you are protecting the company and its prospects for long-term success.
08/07/2014
Chris Tkach of RubinBrown Chosen for American Institute of CPAs Leadership Academy
Tkach one of only 38 CPAs selected for prestigious group
07/21/2014
Focus on Life Sciences & Technology: 2014 Venture Capital Investment Q2 Update
Venture capital (“VC”) investment gained steam in the second quarter, building upon an already robust start in the first quarter of 2014. According to the PricewaterhouseCoopers / National Venture Capital Association MoneyTree™ Report, VC activity in the United States increased about 37% in the second quarter to $13.0 billion, up from $9.5 billion in the first quarter.
07/14/2014
Focus on Healthcare: IRS Prohibits Employers from Reimbursing Employees for Health Insurance Premiums on a Pre-Tax Basis
The IRS recently issued a clarifying notice reiterating that employers are prohibited from using employer payment plans to reimburse employees, on a pretax basis, for health insurance premiums that employees pay for individual health insurance policies.
07/10/2014
Focus on Gaming: U.S. Gaming Revenues Experience Sharp First Quarter Decline
As featured in the July issue of Casino Journal, the United States commercial gaming industry endured its worst first quarter since the Great Recession of 2008.
07/09/2014
JOIN US! UPCOMING EVENTS & SEMINARS
2014 Manufacturing+ Symposium RubinBrown is proud to sponsor the 2014 Manufacturing+ Symposium, Thursday, September 11, 2014 at the Sporting KC Shield Club. Presentations will focus on the conditions in the manufacturing economy, best practices in workforce and technology, innovation in supply chain systems, and much more.
For more information and to register, please click here.
2014 AM&AA Summer Conference Join our private equity leaders as well as other M&A professionals in Chicago for the 2014 AM&AA Summer Conference entitled
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Evolve: Capturing Opportunities in Today's Market. Be a part of this year's most anticipated industry event for a program that connects 500+ dealmakers representing countries all over the world.
For more information, please click here.
07/09/2014
Private Equity Sits on Sidelines as Mergers Hit a 7-Year High
Buoyed by some of the biggest deals in recent memory, 2014 has so far been the kind of year that bankers and lawyers have been awaiting for some time. Strikingly, however, one of the most deal-focused sets of buyers has been largely sitting out this year's boom. Private equity firms' announced transactions accounted for just 7 percent of all mergers, down nearly half from the same time a year ago.
To read the full article, please click here.
07/09/2014
Revenue Recognition Becomes More Clear
The Financial Accounting Standards Board (FASB) has issued an Accounting Standards Update (ASU) bringing to a conclusion its project to clarify principles for recognizing revenue. This will help to achieve comparability of revenue recognition principles across entities, eliminate diversity in practice and simplify the preparation of financial statements by reducing the number of requirements to which and entity must refer.
To read more, please click here.
07/09/2014
Simplified Financial Reporting for Private Companies
In May, RubinBrown hosted four sold-out seminars on this very topic. Business owners and executives gathered with us to learn more about the recent relief available to private companies.
To read a synopsis of the seminars, please click here.
To view the slide deck from the sold-out Private Company Financial Reporting Seminars, please click here.
07/09/2014
Tax Savings Enjoyed by Your Competitors
Key areas of operations for transportation companies that drive multistate taxation issues include revenue per mile, backhauling, warehousing, location of repairs and maintenance, and capital expenditures. Through a review and analysis of current operations, as well as future business goals, your company can optimize profits and cash flow, while also managing tax costs and limiting unanticipated state tax exposure as your business continues to grow.
To learn more, please click here.
07/08/2014
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 RubinBrown Names New Managers in Assurance Services Group
RubinBrown recently promoted Robert Cascio, Susie Dartt, Chris Daues, and Jessica Mueller to manager.
07/08/2014
RubinBrown Names New Managers in Tax Services Group
RubinBrown recently promoted Lea Grady, Garzyna Lewkowicz and John Zaegel to manager.
07/08/2014
RubinBrown Promotes New Managers
RubinBrown recently promoted Ted Clifton and Donna Krier to manager.
07/03/2014
Focus on Law Firms: Considerations for a Successful Law Firm Merger
Although most studies suggest 70% to 90% of mergers and acquisitions fail to reach their goals, recently there has been a wave of mergers and acquisitions among law firms in an effort to achieve various strategic objectives.
07/02/2014
Focus on Not-For-Profits: Accounting for Private School Capital Projects
An important focus of private schools is the property and equipment which the school uses on a daily basis to educate students and provide extra-curricular activities. Capital projects occur frequently at schools, and the accounting treatment for these capital projects often presents unique challenges.
06/27/2014
Hannah Castellano Recognized as Young Leader
Hannah Castellano was named one of the St. Louis Business Journal’s 30 Under 30.
06/27/2014
RubinBrown Names New Managers in Assurance Services Group
RubinBrown recently promoted Patrick Miller, Casey Pohl and Chris Tkach to manager.
06/27/2014
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 RubinBrown Names New Managers in Tax Services Group
RubinBrown recently promoted Chris Janis and Tim Anderson to manager.
06/27/2014
RubinBrown Promotes New Managers
RubinBrown recently promoted Matthew Hartman, Justin Lee and Ryan Meesey to manager.
06/27/2014
RubinBrown Promotes New Managers in Assurance Services Group
RubinBrown recently promoted Daniel Besmer and Dan Healey to manager.
06/26/2014
Focus on Construction: News From The AGC Financial Issues Forum
RubinBrown’s Construction Services Group recently attended the National Associated General Contractors’ (AGC) Financial Issues Forum in Washington, D.C.
06/20/2014
RubinBrown Names New Partners in Assurance Services Group
RubinBrown recently promoted Matt Finke, CPA, Jeff Sackman, CPA, and Ken Van Bree, CPA, to partner.
06/18/2014
RubinBrown Forms Two New Industry Groups
RubinBrown recently formed two separate industry groups.
06/17/2014
Focus on Construction: FASB Issues New Guidance On Revenue Recognition
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2014-09 bringing to a conclusion its project to clarify principles for recognizing revenue.
06/13/2014
Focus on Fraud & Forensics: 2014 Report to the Nations on Occupational Fraud and Abuse
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The Association of Certified Fraud Examiners’ (ACFE) 2014 Report to the Nations on Occupational Fraud and Abuse was recently released detailing the current trends and findings in the areas of fraud detection and prevention.
06/12/2014
Focus on Dealerships: Auto Dealer Facility Upgrade Programs
The Internal Revenue Service (IRS) recently stated its position with regard to manufacturer incentives paid to dealers to incentivize them to upgrade their facilities.
As factory image programs have grown in recent years the tax consequences of these payments from the manufacturer have also become more important.
06/09/2014
Focus on Private Company Financial Reporting: Relief Is Here
It has been a complaint for nearly four decades. U.S. GAAP (generally accepted accounting principles) can be overly complicated and, in some circumstances, unnecessary for non-public companies.
In May, RubinBrown hosted four sold-out seminars on this very topic. Business owners and executives gathered with us to learn more about new alternatives, from both the FASB and the AICPA, that will help simplify private company financial reporting.
06/09/2014
RubinBrown Names Bettorf, Collet and Tesar as Partners
RubinBrown has promoted Kristin Bettorf, CPA, David Collet, CPA, and Tom Tesar, CPA, CFP®, to partner.
05/29/2014
Focus On Revenue Recognition: FASB Issues Accounting Standards Update
On May 28, 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) bringing to a conclusion its project to clarify principles for recognizing revenue.
05/15/2014
Focus on Life Sciences: 2014 Venture Capital Investment Q1 Update
Venture capital (“VC”) investment increased in the first quarter of 2014. According to the MoneyTree™ Report, a collaboration between PricewaterhouseCoopers and the National Venture Capital Association, VC activity in the United States increased about 12% in the first quarter to $9.5 billion, up from $8.4 billion in the fourth quarter of 2013.
05/07/2014
Focus on State & Local Taxation: Personal Income Tax Reduction in Missouri
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 On May 6, 2014, the Missouri legislature voted to override the governor's veto of Senate Bill 509, giving Missouri taxpayers a personal tax reduction for the first time since the 1920's.
05/01/2014
RubinBrown Adds Naeger
Jeffrey Naeger, JD, CPA, recently joined local accounting firm RubinBrown as a partner in the firm’s Federal Tax Services Group.
04/30/2014
Focus on Public Sector: AICPA Offering Webcasts on GASB Pension Standards Implementation Issues
Because GASB Statement 68, Accounting and Financial Reporting for Pensions—an amendment of GASB Statement No. 27, will significantly change how employers participating in cost-sharing plans account for and report pension amounts, the AICPA’s Governmental Audit Quality Center is offering two webcasts to members and non-members.
04/30/2014
Focus on State & Local Taxation: Annual Reporting Requirement for Illinois Business Incentives Due June 2, 2014
If your company received zone benefits in Illinois during 2013, you must complete the user-friendly, online reporting by June 2, 2014 to secure future benefits.
04/28/2014
IT M&A Due Diligence - One Size Approach Doesn't Fit All
Today’s businesses are more reliant on information technology (IT) than in any other time in U.S. history. IT risk is no longer confined to entities involved in processing significant numbers of financial transactions or subject to complex regulation; rather, IT risk is pervasive across all industries in today’s world and is an often overlooked area for due diligence when executing a merger or acquisition.
To read the full article, please click here.
04/28/2014
JOIN US! UPCOMING EVENTS & SEMINARS
Business Exits and Acquisitions: Considerations for Successful Outcomes (Denver) You have worked hard to build your business. If you have ever thought about selling your business or acquiring another, you've realized this can be a complex endeavor with seemingly endless questions. Join us for this informative seminar to learn more about selling and buying businesses.
To register, please click here.
Private Company Financial Reporting: Relief is Here
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 After decades of scrutiny, efforts to improve financial reporting for private companies are finally bearing fruit.
Recently the Private Company Council (PCC) was established with responsibility for determining whether exceptions or modifications to existing nongovernmental generally accepted accounting principles (GAAP) are necessary to address the needs of users of private company financial statements. Additionally, the AICPA released its Financial Reporting Framework for Small and Medium Sized Entities (FRF for SMEs). This brand new accounting option provides privately held, owner-managed businesses another non-GAAP option for financial reporting while still providing meaningful financial results.
Join RubinBrown and AICPA executives at this special event where we explore recent actions taken by the PCC and the AICPA.
Click here to register for the St. Louis seminar on May 16.
Click here to register for the Kansas seminar on May 20.
Click here to register for the Denver seminar on May 21.
04/28/2014
Private Company Financial Reporting - Relief is Here
Relief is finally here for lower and middle market private equity-owned companies in the form of simplified financial reporting guidance. After decades of scrutiny, efforts to improve financial reporting for private companies are finally bearing fruit.
Recently, the Private Company Council (PCC) was established with responsibility for determining whether exceptions or modifications to existing nongovernmental generally accepted accounting principles (GAAP) are necessary to address the needs of users of private company financial statements. This brand new accounting option provides privately held, owner-managed businesses another non-GAAP option for financial reporting while still providing meaningful financial results.
Since January 2014, three accounting standards updates for private companies have been issued by the FASB, including simplified accounting for goodwill which permits a private company to amortize goodwill.
To read more on recent accounting standards updates for private companies, please click here.
See below for information about upcoming seminars about private company financial reporting.
04/21/2014
Focus on Life Sciences: Generating Value Through IP-Backed Financing
ATTENTION IP OWNERS: Your ability to unlock value through intellectual property (IP) backed financing is increasing. Lenders are becoming more willing to use IP as collateral in secured lending again.
04/16/2014
ABA Banking Journal Publishes Article on FRF For SMEs
The ABA Banking Journal publishes an article on the ways the new accounting framework is a useful tool for lenders.
04/09/2014
Focus on Gaming: Casino Gaming Grows, But Regional Revenues Lag
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 04/03/2014
EBITDA and Cash Flow, A Tale of Two Metrics
In the worlds of M&A and valuation, companies’ values are often quoted based on multiples of EBITDA. However, its usefulness is limited to the financial sophistication of its user. In fact, in very few instances is EBITDA a reliable indicator of cash flow.
To read the full article, please click here.
04/03/2014
Focus on Mergers & Acquisitions: EBITDA and Cash Flow, A Tale of Two Metrics
In the worlds of M&A and valuation, companies’ values are often quoted based on multiples of EBITDA. However, its usefulness is limited to the financial sophistication of its user. In fact, in very few instances is EBITDA a reliable indicator of cash flow.
04/01/2014
Focus on Public Sector, Colleges & Universities: GASB Votes Not to Delay the Implementation of Statement No. 68
On March 24, 2014, the Governmental Accounting Standards Board (GASB) voted unanimously not to delay the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions.
03/31/2014
FASB Issues Accounting Standards Update For Private Companies
The Financial Accounting Standards Board (FASB) has issued an update to U.S. Generally Accepted Accounting Principles (GAAP) intended to improve private company financial reporting regarding consolidation of lessors in certain common control leasing arrangements.
03/27/2014
Focus on Colleges & Universities: Student Athletes Allowed To Unionize
In a landmark decision yesterday, the National Labor Relations Board concluded that student athletes receiving football grant-in- aid scholarships are considered employees of Northwestern University, and thereby have the right to hold an election to choose representation to collectively bargain with the university.
03/27/2014
Focus On Information Technology: Windows XP Support is Ending
After April 8, 2014, your XP computer will no longer receive automatic updates that help protect your personal information. Even if you have anti-virus software, your computer will still not be fully secure.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 03/24/2014
Focus on Cyber Security: Cyber Attack Alert
You should be aware of a common type of attack known as a "Man in the Middle." RubinBrown has recently been alerted to a sophisticated cyber fraud scheme perpetrated by a team of foreign fraudsters.
03/17/2014
RubinBrown Employee Recognized with AICPA Elijah Watt Sells Award
RubinBrown team member, Nathan Hutson was presented with the 2013 Elijah Watt Sells Award
03/13/2014
Focus on Internal Audit: Updated Guidance on External Auditor’s Responsibilities When Using the Work of Internal Auditors
The Auditing Standards Board (ASB) has released updated guidance on the use of internal audit work in an external audit. SAS No. 128 applies to financial statement audits performed for periods ending on or after December 15, 2014.
03/12/2014
RubinBrown Hires New Partner
RubinBrown’s Kansas City office proudly announces the addition of firm partner Sunti (Sunny) Wathanacharoen to its Business Advisory Services Group.
03/11/2014
RubinBrown Managing Partner Elected to The Greater Kansas City Chamber of Commerce Board of Directors
RubinBrown is proud to announce Todd Pleimann, CPA, managing partner of RubinBrown’s Kansas City office and partner in its Assurance Services Group, was recently elected to The Greater Kansas City Chamber of Commerce board of directors.
02/26/2014
Focus on Life Sciences: Public-Private VC Partnerships Creating Investment, Innovation and Jobs in Life Sciences & Technology
By having a presence in Missouri, Kansas and Colorado, RubinBrown has a front row seat to observe the success that not-for- profit organizations are having creating jobs and promoting economic development in the life sciences and technology industries. Three of these organizations are quasi-governmental entities designed to create an extensive network of resources for start-up companies and promote innovation and entrepreneurship. With guidance and support from these organizations, Missouri, Kansas and Colorado are becoming premier locations for start-up life sciences & technology companies.
02/25/2014
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 RubinBrown Adds White
Aisha White recently joined RubinBrown as a manager.
02/24/2014
Focus on Construction: News From the AGC Financial Issues Forum
RubinBrown's Construction Services experts recently attended the National Associated General Contractors’ (AGC) Financial Issues Forum in Miami, Florida.
02/24/2014
Focus on Cyber Security: New Framework Released To Mitigate Risk of Cybercrime
Cyber attacks have become an everyday reality which now drive home the importance of collaborative business and governmental action.
02/18/2014
Focus on Mergers & Acquisitions: Considerations With Buying A Company That Owns Real Estate
Many financial buyers prefer to acquire companies free-and-clear of real estate. However, there are times when there is little choice but to acquire a business’ real estate in tandem with the business.
02/18/2014
Focus on Taxation: Beware of Tax Scams Now That Filing Season Is Here
With the start of the 2014 tax season, the Internal Revenue Service is urging taxpayers to be aware that tax-related scams using the IRS name proliferate during this time of year.
02/12/2014
Focus on Construction: News from Las Vegas
The annual Home Builders International Builders Show (IBS) was held in Las Vegas the first week of February. For the first time, IBS was combined with the Kitchen and Bath Industry Show to create a Design and Construction week.
02/12/2014
Focus on Healthcare Reform: Employer Mandate Delayed For Some Businesses Until 2016
On Monday, February 10, The U.S. Department of the Treasury and the Internal Revenue Service issued final regulations implementing the employer responsibility provisions under the Affordable Care Act (ACA) that take effect in 2015.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 02/10/2014
Breakfield Joins RubinBrown
RubinBrown recently added Mark Breakfield as a manager
02/10/2014
Harris Recognized as Young Leader
Steven Harris, CPA, partner-in-charge of RubinBrown’s Entrepreneurial Services Group was named one of the St. Louis American’s 2014 Young Leaders.
02/03/2014
Focus on Life Sciences: 2013 Venture Capital Investment: A Year in Review
Venture capital (“VC”) investment increased in 2013, both in amounts invested and in deals made. According to PriceWaterhouseCoopers’ and National Venture Capital Association’s MoneyTree™ Report, VC activity in the United States increased by about 7.5% in 2013 to $29.4 billion in VC investment, up from $27.3 billion in 2012.
01/30/2014
Focus on Assurance: RubinBrown Publishes First Audit Quality Report
In January 2014, RubinBrown published its first ever audit quality report. Audit quality reporting is an emerging issue in the public accounting profession. Audit quality reporting is intended to foster greater confidence in the audit process by assisting financial statement users, audit committee members and other stakeholders in understanding how an audit firm’s management and operations support the performance of high quality audits.
01/27/2014
Focus on Taxation: Revised Accounting Method Change Procedures Related to Tangible Property Regulations Issued
In September of 2013 the IRS issued final tangible property regulations that provided guidance on the application of Internal Revenue Code Sections 162(a) and 263(a) to amounts paid to acquire, produce, or improve tangible property. RubinBrown has previously communicated that in order to adopt these new regulations, which are generally applicable to tax years beginning on or after January 1, 2014, change in accounting method filings will be required. On January 24, 2014 the IRS provided revised procedures for making these filings.
01/27/2014
REMINDER! Focus on Small Business: 1099 Information Return Requirements
What to Report in 2013 Payments of $600 or more to individuals, sole proprietorships, trusts or partnerships for rent, prizes or awards, or services rendered for a trade or business. Dividends, interest and royalties must be reported whenever the payment is $10 or more. Payments to corporations for medical services also must be reported on Form 1099-MISC.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 01/27/2014
RubinBrown Hires New Partner with Extensive State and Local Tax Expertise
RubinBrown’s Denver office announces the addition of a new firm partner, Rhonda Sparlin, CPA.
01/24/2014
Sharon Latimer, CPA Named as a Member of KC Business Magazine’s 2014 Class of Influential Women
RubinBrown is proud to announce Sharon Latimer, CPA, partner in RubinBrown’s Assurance Services Group, was named to KC Business magazine’s 2014 Class of Influential Women.
01/20/2014
Focus on Small Business: Partnership Fringe Benefits
In certain instances a partner may have to recognize income on normally tax-favored fringe benefits provided to employees. When a partnership provides benefits to a partner the benefit will either be treated as a guaranteed payment to the partner or as a non-taxable fringe benefit other employees benefit from. Instances from both conditions are listed.
01/17/2014
Focus on Private Company Financial Reporting: FASB Issues Accounting Standards Updates For Private Companies
On January 16, 2014, the Financial Accounting Standards Board (FASB) issued two updates to U.S. Generally Accepted Accounting Principles that provide alternatives for private companies on accounting for goodwill and interest rate swaps. Both of these Accounting Standards Updates had been proposed by the Private Company Council and subsequently endorsed by the FASB.
01/15/2014
Focus on Taxation: Expired Tax Provisions
While you are pulling together your information to prepare your 2013 income taxes, you should know about the tax provisions that expired at the end of the year. The following are among the more significant of these provisions.
01/13/2014
Focus on Private Company Financial Reporting: FASB And PCC Issue Private Company Framework
As part of their ongoing commitment to consider the needs of users and preparers of private company financial statements, the Financial Accounting Standards Board (FASB) and the Private Company Council (PCC) have issued the Private Company Decision-Making Framework (Guide). Such a framework was a recommendation of the Blue-Ribbon Panel on Standard Setting for Private Companies in January 2011. As part of the process of establishing the PCC, the Financial Accounting Foundation had determined that one of the responsibilities of the PCC would be to develop, jointly with the FASB, criteria for determining whether and in what circumstances alternatives within U.S. generally accepted accounting principles (GAAP) are warranted for private
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 companies.
12/23/2013
FASB and PCC Finalize Private Company Decision-Making Framework
As reported by Accounting Today, the Financial Accounting Standards Board and the Private Company Council have issued the final version of their Private Company Decision-Making Framework: A Guide for Evaluating Financial Accounting and Reporting for Private Companies to help FASB and the PCC determine whether and when to provide alternative recognition, measurement, disclosure, display, effective date or transition guidance for private companies reporting under U.S. GAAP.
Click here to read the article.
12/20/2013
Got Revenue?
In a number of recent financial due diligence engagements, RubinBrown's advisors noticed probable misstatements of a target's reported revenue. Revenue misstatements usually result in a reduction to revenue (and EBITDA), but not always. The following is a list of revenue misstatements that have been uncovered, as well as the usual direction of any adjustment necessary to bring a company's reported revenue in line with reality.
12/19/2013
Focus on Life Sciences: Intellectual Property as Loan Collateral – Primer to a Growing Form of Asset-Backed Borrowing
The exposure and press dedicated to the use of intellectual property as loan collateral has increased dramatically in recent years. This article highlights similarities and differences between IP-based lending and traditional forms of lending, possible reasons for the growth in IP-based lending, and recent high-profile examples of loans secured by intellectual property.
12/18/2013
Focus on Not-For-Profits: Should Your Church Be Audited?
The answer to that question depends upon the needs of your church. Do the church's by-laws require an audit? Does your church have a loan covenant that requires an audit or are there plans for a future facility or renovations that will require financing? Would the additional accountability provided by an external audit provide comfort to your congregation and the community? Is the church interested in the by-products of an audit, such as suggestions to strengthen internal controls surrounding cash processes? Or, is your church required by a voluntary membership organization to conduct an audit as a condition of membership and accreditation?
12/16/2013
Focus on Construction: How Final Tangible Property Regulations Affect the Construction Industry
The Final Tangible Property Regulations address a broad range of capitalization and deduction issues related to tangible property that will most likely impact all industries, including construction. Specifically, the new rules may provide tax planning opportunities to the construction industry.
12/09/2013
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Taxation: Final Regulations for Qualified Stock Dispositions Issued
The Internal Revenue Service (IRS) recently issued final regulations under Code Section (Sec.) 336(e) that allow individuals and partnerships, in certain circumstances, to step-up their basis in business assets acquired by stock acquisition.
12/02/2013
Join RubinBrown at the AM&AA 2014 Winter Conference
RubinBrown is a sponsor for the upcoming AM&AA Winter Conference, “Dynamic Deal Making: New Rules, New Strategies, New Opportunities,” taking place January 21-23 in Scottsdale, AZ. The conference is designed to provide educational and networking opportunities for a diverse group of middle market professionals and will feature stimulating panel discussions, focused conversations and dynamic dialogue.
This international group of 450+ attendees will include:
Investment Bankers Private Equity Investors Senior & Mezzanine Lenders CPAs Attorney & Legal Representatives Business Valuators Consultants & Other M&A Professionals
Click here for more details on the event.
Because RubinBrown is a member organization, we are able to pass along a 10% discount on registration. Please click here to register, and use the code “AMAAC” for the 10% discount.
11/18/2013
Focus on Life Sciences: Intellectual Property – Patent Demands, Venture Capital, and IP Legislation: Part 2
Intellectual Property ("IP") and innovation is becoming increasingly important to the U.S. economy, a key reason why IP and IP litigation is getting significant attention recently.
Part 1 of this article highlighted two separate reports focusing on patent demands and the potential consequences. Key takeaways from these reports were that litigation by patent assertion entities ("PAEs" or "patent trolls") is not insignificant, has recently increased in frequency, and seems to be particularly concentrated within the technology and life sciences industries. Separate reports have found that abusive litigation by PAEs limits investment in start up companies and reduces innovation. If true, it is reasonable to infer that constraints on innovation have ripple effects throughout the broader economy.
11/18/2013
Focus on Transportation & Dealerships: How Final Tangible Property Regulations Affect Transportation Industry
While the recently released final tangible property regulations provide comprehensive guidance on capitalization of tangible property, the new rules also provide tax planning opportunities specific to the transportation industry.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 11/13/2013
Focus on Taxation: What to do Before Year End to Implement the New Tangible Property Regulations
The IRS issued the final tangible property regulations on September 13, 2013, modifying and superseding the temporary regulations that were issued on December 23, 2011. The tangible property regulations will apply to all taxpayers. It does not matter what form of business one is in, whether a "C" corporation, an "S" corporation, a partnership, an LLC, a sole proprietorship (Schedule C on individual return), or a rental (Schedule E on individual return); these new rules and requirements will apply. Taxpayers will be required to file one or more Form(s) 3115 for each accounting method change for each separate entity, or trade or business.
11/11/2013
Focus on Life Sciences: Intellectual Property – Patent Demands, Venture Capital, and IP Legislation: Part 1
The U.S. economy is becoming more reliant on innovation to drive growth. Patenting for example, is correlated with high productivity growth, lower unemployment, and business creation.1 Strong intellectual property ("IP") rights, like patents, are critical to incentivizing innovation and ensuring that capital flows to support innovative activity. As a result, the prosecution and litigation of patents have taken center stage in IP strategies and discussions.
11/06/2013
Focus on Healthcare: Self Referral Situations For Physicians
Two recent reports from the US Government Accountability Office (GAO) and the Office of Inspector General (OIG) stress the importance of understanding self referral situations.
The GAO report found that the rate of Intensity-Modulated Radiation Therapy (IMRT) used by self referring urologists grew from 13.1% to 32.3% from 2005 to 2010 as compared with growth of 14.3% to 15.6% among non-referring urologists for the same period. There has been some disagreement about the validity of the data and this may stem from the question of who should perform radiation therapy procedures, oncologists or urologists.
10/28/2013
Focus on Transportation & Dealerships: State Income Tax Apportionment of Interstate Trucking Businesses
The Uniform Division of Income for Tax Purposes Act (UDITPA) equally weighted three-factor property, payroll and sales apportionment formula was designed to apportion the income of multistate manufacturing and mercantile businesses, and may not fairly apportion the income of businesses in other industries, including interstate trucking companies.
10/16/2013
Focus on Private Company Financial Reporting: Private Company Council Votes to Finalize Two Private Company Standards
The Private Company Council (PCC) has voted to finalize two alternatives within U.S. Generally Accepted Accounting Principles (GAAP) for private companies related to accounting for interest rate swaps and, separately, accounting for goodwill in a business combination.
10/07/2013
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Life Sciences: The FASB to Propose Improvements to Financial Reporting for Development-Stage Entities
The Financial Accounting Standards Board recently announced plans to issue an exposure draft in the coming weeks with proposals to improve financial reporting about public and private development-stage entities, easing the requirements for revenue recognition and measurement and other areas.
10/07/2013
Focus on Not-For-Profits: Responding to Information Technology Risks
Not-for-profit organizations face numerous risks, and in the information age, the threat to online security is becoming more and more prevalent. Per Symantec Corporation’s “Internet Security Threat Report 2013”, traditional threats are expanding into new forums such as social media and mobile devices, with an approximate 42% increase in targeted attacks noted in 2012. Particularly relevant for not-for-profit organizations is the fact that 31% of overall targeted attacks were against companies and organizations with fewer than 250 employees, up from 18% in 2011. Not-for-profit organizations can no longer assume that based on their size, they would not be a target for attackers.
09/24/2013
Focus on Public Companies: SEC Votes to Propose Rules for Pay Ratio Disclosure
The Securities and Exchange Commission (SEC) has voted 3-2 to propose a new rule that would require public companies to disclose the ratio of the compensation of its CEO to the median compensation of its employees.
09/23/2013
Focus on Taxation: Final Tangible Property Regulations Issued
Should expenditures related to tangible property be expensed or capitalized?
This is the question that the IRS has addressed with its tangible property regulations, which has been the source of much confusion for many years.
09/20/2013
Focus on State & Local Taxes: Missouri Adopts for 2012 Returns New Single Sales Factor Income Tax Apportionment Formula
On September 18, the Missouri Department of Revenue announced the new single sales factor formula (enacted in HB 128) may be elected on corporate tax returns which have not been filed for the 2012 tax year. The new formula should be a benefit to Missouri corporations which market their goods and services outside of the state of Missouri.
09/18/2013
Focus on Healthcare Reform: Employers Should Provide Notice to Employees by October 1 Regarding Insurance Exchanges
On October 1, 2013, the health insurance marketplaces created by the Affordable Care Act will open. Under the law, it is required that employers provide notice to their employees about these marketplaces, also known as exchanges.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 09/09/2013
Focus on Life Sciences: Midwest Focusing on STEM Education to Help Attract and Support Life Sciences Companies
Life sciences companies thrive in regions that emphasize the importance of science, technology, engineering, and mathematics (STEM) education. States within the Midwest are focusing on improving STEM education, recognizing that a workforce with STEM talent helps attract businesses to the region and helps existing businesses remain competitive. The development of STEM talent begins with the education system and requires collaboration between business leaders, educators, and the government.
09/03/2013
FASB Issues Exposure Draft Related To PCC Proposal Regarding Consolidation Of Certain Variable Interest Entities
The Financial Accounting Standards Board (FASB) has issued an Exposure Draft related to Private Company Council (PCC) Issue No. 13-02, Applying Variable Interest Entity Guidance to Common Control Leasing Arrangements
08/29/2013
Focus on State & Local Taxes: Missouri Enacts “Amazon” Nexus Law for Sales and Use Taxes
Missouri has enacted a law to allow the enforcement of tax collection on remote sellers/retailers of taxable product and services through catalog or internet sales.
08/26/2013
Focus on Risk Services: Exposure Draft for Service Organization Controls
Principles related to the testing of controls at Service Organizations have been updated. Examples of Service Organizations include entities providing technology services and/or information processing services. The Trust Principles relate to the service organization controls that are non-financial and would typically be reported in a Service Organization Control report (SOC 2). A SOC 2 report can include one or more of the five Trust Principles: Security, Availability, Processing Integrity, Confidentiality and Privacy.
08/21/2013
Focus on State & Local Taxation: New Illinois Law Eliminates Composite Return Filings and Changes Nonresident Withholdings and Corporate Income Tax Apportionment
On August 16, 2013, Gov. Pat Quinn signed into law legislation (H.B. 3157) containing important changes to Illinois treatment of nonresident taxpayers and how to apportion income by corporate income taxpayers to the state.
08/16/2013
Focus on State & Local Taxation: New Missouri Law Changes Economic Incentive Programs
Legislation has been enacted that provides income and franchise tax credits and training program incentives under the"Missouri
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Works Program". The legislation also revises the process for designating an enhanced enterprise zone for income tax and property tax incentive purposes, and makes sales, use and transient guest tax changes. The "Missouri Works Program" replaces the Development Tax Credit program, the Rebuilding Communities Tax Credit program, the Enhanced Enterprise Zone Tax Credit program and the Missouri Quality Jobs program.
08/07/2013
Focus on Mergers & Acquisitions: Top Ten Actions to Take Before Going to Market
Presuming that you've made the decision to sell your company and are fully committed to seeing it through, the below items represent what we feel are the Top 10 actions to take before putting your company up for sale. Many of these actions are best undertaken years ahead of a potential sale, yet we often find business owners scrambling to complete these action items during a buyer's due diligence process.
08/05/2013
Focus on Taxation: New Guidance for Domestic Production Activities Deduction
Internal Revenue Code Section 199 provides for a tax deduction equal to 9% of the lesser of the qualified production activities income of the taxpayer for the taxable year or taxable income for the taxable year. The taxpayer entitled to this deduction is often not clear when a contract manufacturing arrangement exists.
08/01/2013
FASB Issues Exposure Drafts Related To Three Private Company Council Proposals
The Financial Accounting Standards Board (FASB) has issued for public comment three Exposure Drafts that address private company stakeholder concerns raised about the relevance and complexity of certain aspects of U.S. generally accepted accounting principles (GAAP).
As reported in the July 2013 Accounting & Auditing Alert, these Private Company Council (PCC) proposals had been previously endorsed by the FASB.
07/31/2013
Focus on Not-For-Profits: Accounting Standards Update and Compliance Study on 457(b) Plans
In April 2013, the FASB issued Accounting Standards Update (ASU) 2013-06, Not-for-Profit Entities: (Topic 958): Services Received from Personnel of an Affiliate. The standard was developed as a result of the current diversity in practice of recording the services of people who work for an organization but are employees of a separate affiliated entity.
07/31/2013
Focus on Small Business: Tips For Employers Which Outsource Payroll
If your company outsources its payroll and related tax duties to a third-party, there is a new fact sheet you will want to review.
07/22/2013
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Not-For-Profits: Key Cash Controls at Events and Activities
Fundraising events are often held by non-profit organizations to promote the mission of the organization and raise funds to support the organization and its programs. Sporting events and activities are also very common, especially at secondary-level schools.
07/19/2013
Focus on Public Sector & Not-For-Profit: OMB Proposes Changes to Single Audits
Earlier this year, the U.S. Office of Management and Budget (OMB) proposed a number of significant changes to the way Single Audit engagements will be conducted going forward.
07/18/2013
Focus on Entrepreneurial Services: Missouri Federal Interest Assessment on Employers
Missouri's current statutes require that employers pay additional interest amounts on their second quarter 2013 Contribution and Wage Reports, which are due July 31, 2013. The additional payments are required to pay the interest on an outstanding loan from the federal government to the state of Missouri for unemployment benefits.
07/18/2013
Focus on Taxation: Healthcare Law Imposes Excise Tax on Employers & Insurance Carriers
A new fee enacted through the new healthcare law to help fund the Patient-Centered Outcomes Research Institute (PCORI) must be paid by certain employers that sponsor self-insured health plans by July 31, 2013.
The first year of the fee is $1 per covered life per year, the second year the fee adjusts to $2 per covered life and then it's indexed to national health expenditures thereafter until it ends in 2019.
07/15/2013
Focus on Private Securities: 80-Year-Old Ban Lifted
The SEC recently voted to lift the 80-year-old ban on advertising for certain private securities offerings, such as private equity and hedge funds. As part of the SEC's JOBS Act, the SEC has relaxed rules on hedge fund and private equity funds ability to use general solicitation to advertise as part of their fundraising efforts.
07/08/2013
Focus on Law Firms: New Trust Account Rules
On October 30, 2012, the Missouri Supreme Court amended Rule 4-1.15 regarding duties related to the safekeeping of property.
07/01/2013
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 AICPA Issues New Financial Statement Framework
The American Institute of Certified Public Accountants (AICPA) has released the Financial Reporting Framework for Small-and Medium-Sized Entities (FRF for SMEs) to help the small business community with its financial reporting needs.
The FRF for SMEs represents a new accounting option for preparing financial statements for privately-held, owner-managed businesses that are not required to use U.S. generally accepted accounting principles (GAAP) for financial reporting purposes.
07/01/2013
FASB Endorses PCC Proposals
The Financial Accounting Standards Board (FASB) has endorsed the following three consensuses-for-exposure reached at the May 7, 2013, Private Company Council (PCC) meeting:
PCC Issue No. 13-01A, "Accounting for Identifiable Intangible Assets in a Business Combination"; PCC Issue No. 13-01B, "Accounting for Goodwill Subsequent to a Business Combination"; and PCC Issue No. 13-03, "Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps."
These endorsements allow the proposals to be exposed for public comment.
06/20/2013
Focus On Private Company Financial Reporting: AICPA Issues New Financial Statement Framework
The American Institute of Certified Public Accountants (AICPA) has released the Financial Reporting Framework for Small-and Medium-Sized Entities (FRF for SMEs) to help the small business community with its financial reporting needs. The FRF for SMEs represents a new accounting option for preparing financial statements for privately-held, owner-managed businesses that are not required to use U.S. generally accepted accounting principles (GAAP) for financial reporting purposes.
06/17/2013
Focus On Small Business: Baker Tilly International Provides Initial Results For Succession Planning Survey
Baker Tilly International, in co-operation with Baker Tilly Pitcher Partners and Swinburne University, has taken a closer look at both the sociological and economic implications for the family business succession process.
06/13/2013
Focus on Life Sciences: White House Task Force Releases Patent Initiatives
On Tuesday, June 4, 2013, the White House issued an initiative on patent issues designed to facilitate continued innovation and help ensure the continued development and delivery of high-quality patents in the United States.
06/06/2013
Focus on Assurance: Baker Tilly International Catches Up With The Fraudsters
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Corporate fraud is on the rise and companies of all sizes need to take better steps to prevent it. Addressing delegates at Baker Tilly International’s annual North American conference, held in May, reformed 1960’s fraudster Frank W. Abagnal.
06/05/2013
Focus on Risk Services: COSO Framework Updated
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) issued its updated Internal Control– Integrated Framework (Framework) and related illustrative documents on May 14, 2013. On December 15, 2014, the Framework will officially replace the original Internal Control – Integrated Framework (the original framework), which dates back to 1992. The original framework has been used by companies, non-profit organizations, governments, and regulators, becoming the global standard used to design, implement, and assess the effectiveness of a system of internal controls.
05/31/2013
2013 RubinBrown Promotions
RubinBrown LLP is proud to announce promotions for the following team members: Amy Altholz, Chris Coleman, Tim Farquhar, Brandon Loeschner, Maureen Pardo, Jeff Schuetz, Tracy Senf, Christina Solomon, Jeffrey Sparks, Scott Voss and Ted Williamson.
05/20/2013
Focus on Lease Accounting: FASB Issues Revised Exposure Draft
The Financial Accounting Standards Board (FASB) has issued its second Exposure Draft as part of its project to change the manner in which entities account for lease transactions. The first Exposure Draft was issued in August 2010 and generated over 800 comment letters. The FASB conducted extensive redeliberations on this topic prior to releasing the second Exposure Draft. The International Accounting Standards Board (IASB) issued its proposal simultaneously with the FASB's action. The revised Exposure Drafts for both organizations are nearly identical.
05/13/2013
Focus on Life Sciences: U.S. Supreme Court's Unanimous Ruling Supports Monsanto's Patent Rights
On Monday, May 13, 2013, the U.S. Supreme Court ruled unanimously in Bowman v. Monsanto Co. et al. that Indiana farmer Vernon Hugh Bowman infringed upon Monsanto's patents by planting soybean seed containing Monsanto's technology outside the scope of an executed technology license agreement signed by Mr. Bowman.
05/06/2013
Focus on Private Equity: The State of Mergers & Acquisitions Activity
The blistering pace set in the 4th quarter of 2012 has passed, but deal flow, while slow in early 2013, looks to be picking up. The middle market1 continues to be a bellwether for the greater M&A market. Secondary buyouts2 represent an increasing share of private equity exits.
04/25/2013
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Risk Services: State of the Internal Audit Profession
The Institute of Internal Auditors (IIA) Audit Executive Center recently released the Spring 2013 Pulse of the Profession for North America.
The results of the semiannual survey provide information about the state of the internal audit profession, as well as emerging issues and trends. The results are compiled from the responses of 554 Chief Audit Executives and Managers.
04/22/2013
Focus on Not-For-Profits: Trends in Financial Statement Reporting
Not-for-profit organizations often receive advertising or other promotional materials at no charge in order to help promote their mission or solicit donations.
03/29/2013
Focus on Internal Audit: Proposed Rule Change Would Require Internal Audit Function for NASDAQ Listed Companies
On February 20, 2013, NASDAQ submitted a proposed rule change to the U.S. Securities and Exchange Commission (SEC) that would require NASDAQ listed companies to establish and maintain an internal audit function.
The proposed rule, open for comment through March 29, 2013, would bring the NASDAQ into alignment with the New York Stock Exchange (NYSE), which already requires its listed companies to have an internal audit function.
03/22/2013
Focus on Life Sciences: MOSIRA Passage Ruled Unconstitutional by Missouri Supreme Court
On Tuesday, March 19, 2013, the Missouri Supreme Court upheld a February 2012 Cole County court ruling that the Missouri Science and Innovation Reinvestment Act ("MOSIRA") was not properly passed by the Legislature because of language that made its implementation contingent upon the passage of another bill.
03/21/2013
Focus on Not-For-Profits: IRS Doesn't Allow Two Parsonages
One of the largest tax benefits available to "ministers of the gospel" (priests, rabbis, ministers, pastors, etc.) is the parsonage exclusion. This provision allows these individuals to receive the value of lodging or a cash allowance used to provide lodging on an income tax-free basis.
03/20/2013
Focus on State & Local Taxation: Delaware Unclaimed Property Voluntary Disclosure Programs
If you have a business operating out of or incorporated within the state of Delaware, you may benefit from applying to the newly enacted unclaimed property voluntary disclosure agreement programs.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 02/22/2013
Focus on Not-For-Profits: Alternative Investments & Unrelated Business Income
Over the past two decades, many not-for-profit organizations, including foundations and endowment/investment funds, have begun investing more regularly in alternative investments. Alternative investments are defined for financial reporting purposes as investments for which a readily determinable fair value does not exist.
02/11/2013
Focus on Taxation: Actions To Take Now Related To The New Tangible Property Regulations
The new tangible property regulations will provide the most dramatic change in tax law in the area of expenditure capitalization to affect for-profit businesses since the overhaul of the Internal Revenue Code in 1986.
02/07/2013
Focus On Not-For-Profits, Public Sector and Colleges and Universities: OMB Proposes Changes to Single Audit Requirements
On January 31, 2013, the U.S. Office of Management and Budget (OMB) issued Proposed OMB Uniform Guidance: Cost Principles, Audit, and Administrative Requirements for Federal Awards, a publication which contains proposed regulations that would significantly modify the requirements associated with Single Audits conducted pursuant to OMB Circular A-133.
02/01/2013
Focus on International Business: Baker Tilly International Reports Revenue Growth
RubinBrown is a proud to be an independent member of Baker Tilly International, the world's 8th largest accounting network in the world.
This week, Baker Tilly International reported annual revenues of US$3.3bn for the financial year ending June 30 2012, a year-on- year increase of 3%.
01/31/2013
Focus on Life Sciences: The Importance of Intellectual Property Protections in the Plant Sciences Industry
Intellectual property ("IP") can be a source of significant change in an industry. The innovation that flows from new inventions, processes, or designs can have a tremendous impact on the direction and growth of industries. Of equal importance are the protections that creators place on their IP. IP protections help establish a framework that provides incentives to innovate.
01/28/2013
Focus on Not-For-Profits: Rise of Groupon and Other Deals
With more than 22 million Groupons sold in the United States and a user base exceeding 50 million, many businesses, as well as
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 not-for-profit organizations, have turned to Groupon, as well as other "deal sites" such as Living Social.
01/28/2013
Focus on Tribal Gaming: Native Nations Policy Summit 2013 – A Review of Policies Discussed
On Saturday, January 20, 2013, the National Indian Gaming Association (NIGA) held a policy summit in Washington D.C. to discuss a variety of issues relating to Indian Sovereignty. The session was well represented with tribal leaders from around the country participating in the discussions and advocating for the recognition and freedoms due to sovereign Indian Nations. The discussions were highlighted by the participation of a Freshman Senator, Heidi Heitkamp of North Dakota, and Freshman Congressmen, Dan Kildee of Michigan (District 5) and Markwayne Mullin of Oklahoma (District 2).
01/23/2013
Baker Tilly International Launches Succession Planning Research
Baker Tilly International, the world’s 8th largest network of independent accounting and business advisory firms, today announced that it has launched a global research project on succession planning and is inviting owners of privately-held and family businesses to participate via an online survey, which can be found by clicking HERE.
01/17/2013
Focus on Professional Services: Implications of the New Tax Law
As a service to RubinBrown’s professional services clients, we have summarized the prominent provisions of the new tax law that are most applicable to your businesses.
01/16/2013
Focus on Construction: Summary of the American Taxpayer Relief Act for the Construction Industry
On January 1st, 2013 Congress passed the American Taxpayer Relief Act. Below is a summary prepared by RubinBrown's Construction Services Group to highlight many of the implications to the Construction Industry.
01/11/2013
Focus on Manufacturing & Distribution: Summary of 2012 Taxpayer Relief Act for the Manufacturing & Distribution Industry
On January 1st, 2013 Congress passed the American Taxpayer Relief Act. Below is a summary prepared by RubinBrown's Manufacturing and Distribution Industry Group to highlight many of the implications to the Manufacturing and Distribution Industry.
01/10/2013
Focus on Not-For-Profits: The American Taxpayer Relief Act of 2012 and Beyond
On January 2, 2013, the President signed the American Taxpayer Relief Act of 2012 (the "Act") into law. From the viewpoint of many charitable organizations, the majority of the provisions of the Act related to not-for-profit organizations target temporary extensions of various donation benefits.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 01/09/2013
Focus on Taxation: Colorado Pre-Certification of Enterprise Zone Credits
RubinBrown reminds its clients and contacts that for all businesses located in Enterprise Zones, Colorado requires pre- certification of eligibility for Enterprise Zone Credits. This became effective January 1, 2012.
01/08/2013
Focus on Life Sciences: Provisions of New Tax Legislation Affect Life Sciences
On January 1, 2013, the Senate and House of Representatives passed the American Taxpayer Relief Act, which the President signed into law on January 2, 2013.
01/04/2013
Focus on Benefit Plans: Provisions of New Tax Legislation Affect Qualified Retirement Plans
On January 1, 2013, the Senate and House of Representatives passed the American Taxpayer Relief Act.
01/02/2013
Focus on Taxation: American Taxpayer Relief Act
On January 1, 2013, the Senate and House of Representatives passed the American Taxpayer Relief Act ("Act"). The President signed the Act into law on January 2, 2013. The summary below has been prepared by RubinBrown tax executives to highlight many of the implications of this legislation.
01/02/2013
Private Company Council Holds Initial Meeting
On December 6, 2012, the Private Company Council (PCC), a new body created to improve the standard-setting process for private companies, held its inaugural meeting in Norwalk, Connecticut.
The PCC was established in May 2012 by the Board of Trustees of the Financial Accounting Foundation (FAF) to work with the Financial Accounting Standards Board (FASB) to determine the need for modifications of U.S. Generally Accepted Accounting Principles (GAAP) for private companies.
12/03/2012
AICPA Proposes Financial Statement Framework For Small And Medium-Sized Private Companies
The American Institute of Certified Public Accountants (AICPA) has proposed a special purpose accounting framework for small and medium-sized private companies (referred to as SMEs) that do not require financial statements based on U.S. generally accepted accounting principles (GAAP).
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The proposed financial reporting framework (FRF for SMEs) is less complicated than GAAP and is based on the perceived needs of the primary users of the financial statements of SMEs. The proposed FRF is principles based and comprises accounting principles for transactions and events most likely to be encountered by SMEs.
11/09/2012
Focus on Fraud & Forensics: Fraud Awareness Week Casts Spotlight on White Collar Crime
RubinBrown is promoting International Fraud Awareness Week, November 11-17, 2012 to increase businesses anti-fraud awareness and offer education resources.
11/08/2012
Focus on State & Local Taxation: California Passed Various Ballot Initiatives on November 6, 2012 and Relief Announced for Victims of Hurricane Sandy
Proposition 30 retroactively increases income taxes effective January 1, 2012. The following rate increases are effective for seven years.
10/23/2012
Focus on Taxation: What Will Change If Congress Doesn't Act
U.S. tax law will significantly change for both individuals and businesses as many tax provisions either expired at the end of 2011 or will expire at the end of 2012.
Unless new legislation is passed, the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003, other than those made permanent or extended by subsequent legislation, sunset and won’t apply to tax years 2012, as well as subsequent years.
10/22/2012
Focus on Tribal Gaming: NIGC Minimum Internal Control Standard Changes
On October 22, 2012, the National Indian Gaming Commission (NIGC) revisions of two critical regulations became effective: 25 CFR Part 543 Minimum Internal Control Standards (MICS) for Class II Gaming (MICS) and 25 CFR 547 Minimum Technical Standards for Class II Gaming Systems and Equipment.
The new standards are critical to tribal gaming regulators as the standards provide much needed updates to the control regulations, which had recently fallen behind technology, and will ensure the integrity of Indian Gaming is upheld for years to come.
10/17/2012
Focus On Internal Audit: New Revisions to The International Standards for Professional Practice of Internal Auditing
The Institute of Internal Auditors (IIA) has approved changes to the International Standards for the Professional Practice of Internal Auditing (Standards). The revised standards will go into effect Jan. 1, 2013. In total, 18 revisions were made.
10/16/2012
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Life Sciences: Valuation Issues Unique to Life Sciences Companies
Companies in the Life Sciences industry require valuations for various reasons: transactions (raising investment funds, compensating employees, licensing intellectual property, etc.), tax purposes, financial reporting, or litigation purposes.
09/24/2012
Focus on Manufacturing & Distribution and Public Companies: SEC Issues Final Rule on Section 1502: Conflict Minerals
The following serves as an update to a previously published E-Focus Newsletter on the same topic in October 2011. Click here to view the previously published article.
09/13/2012
Focus on Life Sciences: Implications of the Current U.S. Drought
The United States is experiencing a drought of historic proportions, and despite recent precipitation brought on by Hurricane Issac's landfall, there is no end in sight. The current drought has far-reaching implications, many of which are yet to be felt by U.S. consumers and businesses.
09/04/2012
FASB Seeks Input On Private Company Financial Statement Decision-Making Framework
The FASB has issued an Invitation to Comment - Private Company Decision-Making Framework—A Framework for Evaluating Financial Accounting and Reporting Guidance for Private Companies seeking input from constituents for consideration by the FASB and the newly established Private Company Council (PCC) in developing a decision-making framework for the financial statements of private companies.
The Discussion Paper is intended to gather input from stakeholders concerning the appropriateness, completeness, and cost effectiveness of the proposed private company framework.
08/15/2012
Focus on Healthcare: Medical Loss Ratio Rebate Checks
As a part of the Affordable Care Act, health insurers providing coverage that do not meet the medical loss ratio (MLR) must provide an annual rebate to each enrollee under such coverage, on a pro-rata basis.
08/10/2012
Focus on State & Local Taxation: Updates For Missouri, Colorado, and Kansas
Every year in December, RubinBrown is proud to host our Year-End Tax & Accounting Updates in Denver, Kansas City, and St. Louis.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 08/08/2012
Focus on Life Sciences: Revisiting Missouri's Strategic Initiative for Economic Growth
In 2010, the state of Missouri initiated a strategic planning process to assist in mapping the direction of, and investment in, the economic future of the state.
08/02/2012
Focus On Estate Planning: Time May Be Running Out On Major Estate Planning Benefit
While many sunsets are fantastic, there is one on the horizon that could prove costly to your estate.
07/26/2012
Focus On Not-For-Profit Social Service Agencies: Fundraising Events Reporting on Form 990 or 990-EZ, Schedule G, Part II
The primary purpose of a fundraising event is to raise funds to support the mission of a social service agency or other not-for- profit organization by selling goods or services.
07/25/2012
Focus on Public Companies: SEC Staff Publishes Final Report on Work Plan for Global Accounting Standards
On July 13, 2012, the Securities and Exchange Commission (SEC) issued a Work Plan for the Consideration of Incorporating International Financial Reporting Standards (IFRS) into the Financial Reporting System for U.S. Issuers (Work Plan).
07/20/2012
Focus On Not-For-Profit Private Schools: Implications of School Raffles
Raffles are becoming a popular way for private schools and other tax-exempt organizations to raise funds.
There are potential pitfalls to be aware of, so before holding your first raffle, or even if you’ve already had a raffle or two, consider the following questions and answers.
07/02/2012
FAF Issues Final Report On Private Company Council
The Financial Accounting Foundation (FAF) has issued its Final Report on the Establishment of the Private Company Council (PCC).
The final report provides more insight on the roles and responsibilities of the PCC Chair and members, as well as the PCC agenda and process, the voting for exceptions or modifications to existing U.S. GAAP, the PCC role in projects on the Financial Accounting Standards Board (FASB) agenda, and the FASB endorsement process.
07/02/2012
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Broadcasting: ASCAP & BMI License Agreement Settlements
The following are updates from recent agreements reached between the Radio Music License Committee (RMLC) and Television Music License Committee (TMLC) with American Society of Composers, Artists, and Producers (ASCAP) and Broadcast Music Industry (BMI).
06/27/2012
Focus on Life Sciences: Kansas Tax Relief Measures
Kansas Governor Sam Brownback recently signed one of the largest tax relief measures in Kansas history. At the heart of the tax changes is a reduction of individual tax rates and a shift from a three-bracket to a two-bracket system.
06/26/2012
Focus On Public Sector: GASB Approves Issuance of New Pension Accounting and Financial Reporting Standards
On June 25, The Governmental Accounting Standards Board (GASB), voted to approve two new standards that will substantially improve the accounting and financial reporting of public employee pensions by state and local governments.
06/20/2012
Focus on Media & Entertainment: The Latest Trends In The Media Industry
A few weeks ago, RubinBrown Leaders Larry Rubin and Jessica Sackman of the Media & Entertainment Group attended the Media Financial Management Association’s Annual Conference.
06/18/2012
Focus on Manufacturing & Distribution: Economic Survey Results
RubinBrown has teamed up with the Missouri Association of Manufacturers to conduct a survey that assesses the manufacturing industry's economic conditions.
06/12/2012
Focus on Life Sciences: Funds Flow into Renewable Energy Projects
According to recent reports, Goldman Sachs Group Inc. will invest more than $40 billion over the next decade into renewable energy projects.
06/04/2012
AICPA Supports FAF’s Decision Regarding New Advisory Body
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The Financial Accounting Foundation (FAF), the oversight body of the Financial Accounting Standards Board (FASB), has made known its highly-anticipated decision regarding its proposal to create an advisory body to improve the standard setting process for private companies. Subsequent to that announcement, the American Institute of Certified Public Accountants (AICPA) declared its support for the FAF’s decision.
05/31/2012
2012 RubinBrown Promotions
RubinBrown LLP is proud to announce promotions for the following team members: Brian Amelung, Ben Barnes, Wayne Danneman, Bill Gawrych and Sharon Latimer.
05/30/2012
Focus on State & Local Taxation: Kansas Tax Relief Measures
Kansas Governor Sam Brownback recently signed one of the largest tax relief measures in Kansas history. At the heart of the tax changes is a reduction of individual tax rates and a shift from a three-bracket to a two-bracket system.
05/23/2012
Focus on Private Company Financial Reporting: FAF Makes Decision Regarding New Advisory Body
The FAF established a new body, the Private Company Council (PCC) which will have two main responsibilities. The PCC will determine whether exceptions or modifications to existing nongovernmental U.S. Generally Accepted Accounting Principles (GAAP) are necessary to address the needs of users of private company financial statements. Any changes proposed by the PCC will be subject to subsequent endorsement by the FASB and submitted for public comment before being incorporated into GAAP. The PCC will also be the primary advisory body to the FASB on the appropriate treatment for private companies for items under active consideration on the FASB’s technical agenda.
04/02/2012
Focus on Not-For-Profit Religious Organizations: Centralization of Administrative Functions
As religious organizations face a decline in the number of individuals entering their orders, the capacity to handle administrative functions to run their organizations becomes more difficult to manage.
04/02/2012
Focus on Not-For-Profit Trade & Membership Organizations: Taxable Versus Nontaxable Fringe Benefits
Fringe benefits and their taxability is a complex issue many nonprofits do not fully understand. In fact, this area is often overlooked and organizations are often surprised to learn that some of the perks they provide to their employees and board members should be reported as compensation, even if no cash is involved. The consequences for not properly reporting taxable fringe benefits can be detrimental not only to the organization but also to the individual. Additional employment taxes may be due on the benefits. Note that board members who are not otherwise employed by the organization are considered independent contractors, not employees. Many benefits require an employer-employee relationship.
03/31/2012
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 RubinBrown Partner Featured In News Report On St. Louis Jobs
Recently the Regional Business Council surveyed 1200 members of their Young Professionals Network to gather members' perceptions on the St. Louis area.
03/30/2012
Focus on Life Sciences: New Excise Tax on Medical Devices
The Patient Protection and Affordable Care Act and the Health Care and Educational Reconciliation Act of 2010 will impose a new tax on medical devices. The new tax goes into effect January 1, 2013.
03/23/2012
RubinBrown Named Fastest Growing Midwest Firm
Accounting Today names RubinBrown as the fastest-growing firm in the Midwest in the 2012 Regional Leaders list.
03/22/2012
Chairman and Managing Partner Named In Most Influential St. Louisans
The St. Louis Business Journal's 2012 Most Influential St. Louisians include RubinBrown Chairman, Jim Castellano and Managing Partner, John Herber, Jr.
03/16/2012
RubinBrown Team Member Scores Among Highest in US on CPA Exam
Congratulations to RubinBrown's Chris Tkach who obtained one of the 10 highest scores in the country on the CPA exam.
03/15/2012
RubinBrown Chairman Co-Chairs Benefit Planning Committee
Jim Castellano, RubinBrown chairman, joins five other community leaders in planning 2012 Bob Costas Benefit.
03/12/2012
Focus On Public Sector: OMB Issues Proposed Rule Changes For Single Audits and Grant Administration
Since 2009, the current administration has issued a number of memorandums with a common theme of maintaining accountability over the $600 billion in federal grants spent each year, while at the same time reducing the onerous requirements that have not necessarily produced better outcomes.
03/11/2012
RubinBrown Services for Boone County Commission
03/08/2012
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 RubinBrown Supports St. Louis Regional Business Plan Competition
RubinBrown offers in-kind services to winners of St. Louis Regional Business Plan Competition.
03/02/2012
RubinBrown Adds To Federal Tax Services Group
RubinBrown adds a new partner, Henry Rzonca, CPA, to the federal tax services group and the manufacturing and distribution services group.
02/24/2012
Focus On Taxation: Payroll Tax Cut Extension Signed – Now Through 2012
On February 22, President Obama signed legislation that extends the 2% payroll tax holiday that was enacted by the 2010 Tax Relief Act that was set to expire on March 1, 2012.
02/20/2012
Focus on Business Advisory Services: Basel Committee on Banking Supervision Assesses the Effectiveness of the Internal Audit Function in Banks
On December 2, 2011, the Basel Committee on Banking Supervision (the Committee) issued revised guidance for assessing the effectiveness of the internal audit function in banks.
02/17/2012
2011 Country Club Stats Released
02/17/2012
Focus on Colleges & Universities: Changes to Student Financial Aid Provisions
The President’s Federal budget request for the 2013 fiscal year was released earlier this week. It contained several important provisions that are expected to encompass the Student Financial Aid program, Federal research grants, and the overall higher education landscape.
02/15/2012
Focus on Life Sciences: Protect Your Intellectual Property and Intangible Assets
According to the US Trade Administration and the US Department of Commerce, Companies in the United States lose between 200 and 250 billion dollars from intellectual property (IP) and more broadly intangible asset (IA) theft every year.
02/13/2012
Focus on Taxation: Clarification on the 1099 Reporting Rules
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Last year the President signed the 1099 Repeal Act, which eliminated two burdensome provisions related to 1099 reporting that were originally enacted in two separate tax acts passed in 2010. Accordingly, we have received several questions requesting guidance on the 1099 reporting requirements
02/09/2012
Focus on Taxation: IRS E-Filing Requirements and Mailing Prohibition
As tax season kicks off, RubinBrown reminds our clients of the IRS e-filing requirements, as well as the IRS’ prohibition on specified tax return preparers mailing individual income tax returns to the IRS on behalf of clients after December 31, 2011.
02/09/2012
RubinBrown Chairman On Panel Discussing Economy
Jim Castellano, chairman, sits on panel of three discussing economic outlook.
02/07/2012
Focus On International Business: The Continued Strength of the Baker Tilly International Network
In order to better serve our clients with international operations, RubinBrown proudly serves as an independent member of Baker Tilly International.
Baker Tilly International is one of the world’s leading networks of independently owned and managed audit, accounting and business advisory firms.
02/07/2012
RubinBrown Celebrates 60th Anniversary
02/06/2012
RubinBrown Sponsors Olin Cup
RubinBrown is proud to sponsor competitions in which the Skandalaris Center for Entrepreneurial Studies at Washington University awards investment money to fund startup businesses.
02/03/2012
RubinBrown Chairman Gives Accolades to School President
Jim Castellano, RubinBrown chairman and St. Joseph's Academy board member, comments on the new president of St. Joseph's Academy.
02/03/2012
RubinBrown Manager Recommends Surprise Audits
In a St. Louis Business Journal Special Section on Law & Accounting, Christina Solomon, Business Advisory Services manager, encourages companies to do fraud risk assessments and put fraud-prevention hotlines in place.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 02/03/2012
RubinBrown Managing Partner Offers Tax Season Advice
Managing partner, John Herber, Jr., offers timely advice for 2012 tax season.
02/01/2012
Focus on Professional Services: New Audit Technique Guides Issued
Over the last year, the IRS released revised comprehensive Audit Technique Guides (ATG) for auditors to use in conducting exams of individuals in professional service industries.
01/31/2012
RubinBrown Awarded Heart and Sole Award
Ronald McDonald House Charities® of Metro St. Louis has awarded RubinBrown LLP with the 2011 Heart and Sole Award.
01/31/2012
RubinBrown Supports Social Enterprise and Innovation Competition
RubinBrown is proud to be affiliated with the 2011-12 YouthBridge Social Enterprise and Innovation Competition (SEIC) at Washington University in St. Louis.
01/18/2012
Focus on Business Advisory Services: COSO Integrated Framework
In December 2011, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) issued for public comment an updated Internal Control – Integrated Framework (Framework). Comments are due by March 31, 2012 and can be submitted via the COSO website at www.coso.org. After evaluating the comments received, COSO plans to release the final Framework in the Fall of 2012.
01/18/2012
Focus on Colleges & Universities: Governor’s 2013 Budget Proposes Reduction of Funding for Higher Education
The Governor’s budget contained provisions to maintain relatively level funding for several crucial State Scholarship programs, including Bright Flight, Access Missouri and A+. In terms of core funding to the State’s Community Colleges and Four-Year Colleges and Universities, the Governor’s budget for 2013 proposes the following reductions from the 2012 appropriation levels
01/12/2012
Focus on Public Companies: XBRL Filing Compliance
As companies continue their XBRL filings and move into the detail level of filing (tagging) and as the SEC’s modified liability provisions on XBRL (Extensible Business Reporting Language) data begin to expire, public companies are looking for accuracy,
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 efficiencies and value in the process.
01/11/2012
RubinBrown Assigned Morgan County Audit
The Board of Morgan County Commissioners appoints RubinBrown to handle audit.
01/09/2012
Focus on Construction: Revised Exposure Draft on Revenue Recognition
The Financial Accounting Standards Board (FASB) and The International Accounting Standards Board (IASB) (collectively, the Boards) have issued for public comment a revised Exposure Draft on revenue recognition.
01/05/2012
Focus on Healthcare: An Overview of the 2012 Office of Inspector General Work Plan on Healthcare Providers
The U.S. Department of Health and Human Services Office of Inspector General (OIG) recently published its 2012 Work Plan.
01/03/2012
RubinBrown Partner Named St. Louis 40 Under 40
RubinBrown Partner, Chelle Adams, is named one of the 2012 St. Louis Business Journal 40 Under 40.
12/30/2011
RubinBrown Partner Earns CM&AA Credential
Congratulations to Dan Raskas, a partner in the M&A Services Group, earning the Certified Merger and Acquisition Advisor credential from the Alliance of Merger and Acquisition Advisors.
12/23/2011
Focus on Taxation: Payroll Tax Cut Extension Signed
On December 23, 2011, President Obama signed legislation that extends the 2% payroll tax holiday that was enacted by the 2010 Tax Relief Act that was set to expire on December 31, 2011.
12/20/2011
Focus on Not-For-Profit Foundations: Private Foundations Penalty Taxes
Good intentions and even profitable transactions can lead to significant tax liabilities when a tax-exempt private foundation is a party to the transaction.
12/14/2011
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus On Small Business: Guide To Starting A Business
RubinBrown's Entrepreneurial Services Group is pleased to present the "Guide To Starting A Business." This resource assists entrepreneurs who are contemplating starting or buying a business. The guide includes information on entity structuring, business planning, operations, tax planning and compliance, and much more.
11/21/2011
Focus on Contractors: Repeal of the 3% Government Contractor Withholding
President Obama signed legislation today, November 21, 2011, repealing the 3% government contractor withholding requirement. The withholding requirement was added as part of the Tax Increase Prevention and Reconciliation Act of 2005 and would have mandated that all federal, state and local governments with total annual expenditures of $100 million or more withhold 3% on all government payments for products and services.
11/21/2011
Focus on Public Sector: Repeal of the 3% Withholding
President Obama signed legislation today, November 21, 2011, repealing the 3% government contractor withholding requirement. The withholding requirement was added as part of the Tax Increase Prevention and Reconciliation Act of 2005 and would have mandated that all federal, state and local governments with total annual expenditures of $100 million or more withhold 3% on all government payments for products and services.
11/02/2011
Focus on Manufacturing & Distribution: Section 1502 (Conflict Minerals) of the Dodd-Frank Act
The Dodd-Frank Act, formally named the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, focuses on financial regulatory reform. The act was signed into law in July 2010 by President Obama.
11/01/2011
The Financial Accounting Foundation Looks to Improve Private Company Standards
The Financial Accounting Foundation (“FAF”) Board of Trustees plans to establish a “Private Company Standards Improvement Council” (“PCSIC”) to improve the standard-setting process for private companies.
The PCSIC would determine whether exceptions or modifications to nongovernmental Accounting Principles Generally Accepted in the United States of America (“GAAP”) are required to address the needs of users of private company financial statements.
10/27/2011
Focus on State & Local Taxation: Promoting Employment Across Kansas (PEAK)
With the legislative changes to the Kansas Business and Jobs Credit and the High Performance Incentive Program, many businesses may mistakenly believe that the state of Kansas no longer provides incentives to expand or relocate an existing
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 business to Kansas or locate a new business in Kansas.
10/05/2011
Focus on Public Sector & Not-For-Profit: 2011 OMB Compliance Supplement and FFATA
In March 2011, the Office of Management and Budget (OMB) issued the 2011 edition of the A-133 Compliance Supplement. The supplement is effective for Single Audits of fiscal years beginning after June 30, 2010, and it supersedes the 2010 Compliance Supplement.
09/29/2011
Focus on State & Local Taxation: Colorado (and the City and County of Denver) Tax Amnesty Programs Available
The Colorado Department of Revenue has issued guidance on the tax amnesty program that is operative from October 1, 2011 through November 15, 2011. The amnesty program allows taxpayers to pay the following overdue taxes without additional penalties.
09/26/2011
Focus On Life Sciences: MOSIRA Passes, Now Moves For Governor Signature
The Missouri Science and Innovation and Reinvestment Act (MOSIRA) has been approved by both houses of the Missouri legislature and will be sent to Governor Nixon for his signature.
09/02/2011
Focus on Taxation: Businesses Should Prepare Now For Year-End Tax Provisions
As we approach the end of 2011, businesses should consider taking a fresh look at some of the tax incentives that are currently available but may expire at the end of the year, or may be modified if they survive.
08/23/2011
Focus on Public Sector: GASB Issues Statements No. 63 & 64
In June 2011, the Governmental Accounting Standards Board (GASB) issued two new pronouncements.
08/18/2011
Focus on State & Local Taxation: Illinois Law Lowers Requirement for Unclaimed Property Reporting
Illinois Governor Pat Quinn signed into law HB 1560 (P.A. 097-0270), Uniform Disposition of Unclaimed Property Act. This law shortens the holding period of unclaimed wages and salary to one year.
08/17/2011
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus On Life Sciences: Recent Tax Legislation
Due to the current economic environment, Congress has passed and signed into law numerous tax-related bills that impact businesses.
08/10/2011
Focus on Public Sector: GASB’s Proposed Changes to Pension Accounting
On June 27, 2011 the Governmental Accounting Standards Board (GASB) issued exposure drafts of two statements that will supersede existing guidance on financial reporting for defined benefit pension plans.
08/02/2011
Focus on State & Local Taxation: Missouri "Big Government Get Off My Back Act" To Become Law on August 28
Missouri Governor Nixon’s recently signed into law, House Bill 45, which modifies the so-called “Big Government Get Off My Back Act.”
08/01/2011
Focus on Contractors: FASB Approves Additional Multi-Employer Plan Disclosures
As RubinBrown has previously reported, the Financial Accounting Standards Board (FASB) has been considering requiring additional disclosures for multi-employer pension plans for the past several years.
07/25/2011
Focus on Automotive: Revised Cash Reporting Form
The IRS has recently revised its Form 8300, which businesses must file within 15 business days when they receive over $10,000 in cash from a single transaction or related transaction.
07/18/2011
Focus on Automotive: Proposed Tax Law Changes for LIFO
For several years there has been talk about eliminating the last-in, first out (LIFO) inventory accounting method for income tax purposes.
06/29/2011
Focus on Healthcare: Availability of Medicare Data for Performance Measurements
The Department of Health and Human Services (HHS) continues to draft regulations to support the implementation of The Patient Protection and Affordable Care Act (a.k.a. “Health Care Reform”).
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 06/27/2011
Focus On Retirement Plan Administration: Can an Employee Stock Ownership Plan (ESOP) Help You Finance the Sale of Your Business?
Obtaining financing to fund and operate a business in today’s economic climate can be challenging. It may be even tougher for the owner of a closely-held business to find a buyer with sufficient financing to purchase the business.
06/22/2011
Focus on Contractors: Update on Multi-Employer Plan Disclosures
As we reported back in September 2010, the Financial Accounting Standards Board (FASB) issued Exposure Draft 715-80 on September 1, 2010 titled “Disclosure About An Employer’s Participation In A Multi-Employer Plan”.
06/16/2011
Focus on State & Local Taxation: Colorado Announces Amnesty Program
The Colorado Department of Revenue has announced a tax amnesty program under which taxpayers will be allowed to pay the full amount of overdue personal, corporate, partnership or fiduciary income tax; sales and use tax; gasoline tax; special fuels tax; cigarette and tobacco tax, or severance tax without penalty.
06/03/2011
Focus on State & Local Taxation: Michigan and Connecticut Increase Tax Rates
If your company has operations in Michigan and Connecticut, be aware that recently passed legislation in these states will change your tax burden.
06/01/2011
FASB Chair Addresses Recommendations Related To Standard Setting For Private Companies
At the recent Zicklin Center Financial Reporting Conference at Baruch College in New York, the proposal of a Blue Ribbon Panel on the future of private company accounting standards was addressed by Leslie Seidman, the chairperson of the FASB.
Based on these comments, it is clear that the FASB hopes that the responsibility for private company financial reporting remains in the FASB's hands. These comments also indicate that it is clear that the decision about how to respond to the panel's proposal is being deliberated by the Financial Accounting Foundation (FAF), the FASB's parent organization. The Blue Ribbon Panel was originally commissioned by the FAF to examine standard setting for private companies.
05/31/2011
2011 RubinBrown Promotions
RubinBrown LLP is proud to announce promotions for the following team members: Cheryl Heller, Brent Stevens, Mike Ramirez...
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 05/23/2011
BONDI & RubinBrown Facts Sheet
RubinBrown is a recognized leader for its professional and client services, serving clients ranging from Fortune 500 companies, public and private companies to government and not-for-profit entities
05/23/2011
Denver Firm Combines With RubinBrown LLP
BONDI & Co. LLC, an accounting firm located in Denver, and RubinBrown LLP have joined together, effective June 1, to form what is projected to be among the 50 largest accounting firms in the United States.
05/05/2011
Focus On Business Advisory Services: Controls at Third Parties You Rely Upon
Does your company outsource any services? Do you rely on outsourced services? If so, there is new guidance and reports which may be of interest.
04/15/2011
Focus on Taxation: 1099 Repeal Bill Signed Into Law
President Obama signed into law the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (“1099 Act”) on April 14, 2011.
03/24/2011
Focus on Public Sector: Begin Planning for GASB Statements No. 61 and No. 62
A few weeks ago, RubinBrown provided summary guidance on Governmental Accounting Standards Board (GASB) No. 59 and No. 60. This alert provides similar information regarding Statements No. 61 and No. 62.
03/17/2011
Focus on Public Sector: Begin Planning for GASB Statements No. 59 and No. 60
The Governmental Accounting Standards Board (GASB) issued Statements No. 59 and No. 60 in late 2010.
03/07/2011
Focus on Business Advisory Services: Approaches to Successful Enterprise Risk Management Programs
Enterprise Risk Management, commonly known as ERM, is the identification and mitigation of risks associated with a company’s strategic goals. An organization must align strategic goals and resources when implementing and maintaining a successful risk management program.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 03/01/2011
Focus on Not-For-Profit Religious Organizations: Ministers’ Housing Allowances
By taking some simple actions, a well-informed church can help its minister save money. The parsonage exclusion and housing allowance (also called rental allowance) is the largest tax benefit available to ministers. This exemption allows a minister to exclude from Federal taxable income either the value of a home provided by the church or payments specifically allocated as a housing allowance.
02/16/2011
Focus on State & Local Taxation: Employers Required to Verify St. Louis Earnings Tax Refund Claims of Employees
Individuals requesting an earnings tax refund from the City of St. Louis not only are required to use a new form, but they also now need employer verification and sign off.
02/09/2011
Focus on State & Local Taxation: Health Care Costs for Children Under Age 27 May Be Subject to State Taxation
It may come as a surprise to employers, but many states are not conforming with the new healthcare reform legislation, which requires insurers that provide group health coverage for dependent children to continue such coverage until the dependent turns 26 years old.
02/07/2011
Focus on Media & Entertainment: RubinBrown Survey Reveals Economic Stabilization on the Horizon
RubinBrown’s Media & Entertainment Services Group is proud to serve many clients in the media and entertainment industry.
01/31/2011
Focus on Not-For-Profits: Strategies and Updates for the New Year for Arts and Cultural Organizations
For many arts and cultural organizations, the winter months mark the halfway point in their year and provide a good opportunity for management to review the results of last year and make sure they are on target to meet this year's revenue and budget goals as well as strategic objectives.
01/28/2011
Focus on Accounting: Blue-Ribbon Panel Issues Report on Standard Setting for Private Companies
On Wednesday, January 26, 2011, the Blue-Ribbon Panel (BRP or Panel) issued a much anticipated report on recommendations to the Financial Accounting Foundation (FAF), the parent organization of the Financial Accounting Standards Board (FASB), regarding the future of accounting standards for private companies i ii.
01/18/2011
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus On Internal Audit: Foreign Corrupt Practices Act Compliance
What risks facing your company keep you up at night?
If your company conducts business beyond the US borders, the Foreign Corrupt Practices Act (FCPA) should be close to the top of the list.
01/13/2011
Focus on State & Local Taxation: Illinois Proposes Hefty Tax Increase on Individuals aAnd Businesses
On January 13, 2011, Illinois Governor Pat Quinn signed into law a bill which increases taxes for individuals, estates, trusts and corporations nearly 67 percent. These tax increases serve as an effort to close what is expected to be a $15 billion dollar state budget gap.
01/12/2011
Focus on Media and Entertainment: Personal Property Tax Considerations
While all states authorize the imposition of a tax on real property, only thirty-eight (38) states authorize a tax on personal property.
01/12/2011
UPDATED! Focus on Law Firms: Unlimited FDIC Insurance Coverage For IOLTA In Jeopardy
Many law firms maintain Interest on Lawyers Trust Accounts (IOLTA) on behalf of their clients.
Through December 31, 2010, these accounts receive unlimited FDIC insurance coverage if held at financial institutions participating in the FDIC’s Transaction Account Guarantee (TAG) Program.
01/11/2011
Focus On Accounting: RubinBrown Survey Reveals Uncertainty With New Lease Accounting Rules
As previously reported, the Financial Accounting Standards Board (FASB) has published an exposure draft of proposed accounting changes which will require the recognition of assets and liabilities on the balance sheet of entities to reflect lease obligations.
01/03/2011
Focus on Not-For Profits: Tax Act Extends Charity-Related Provisions and UBTI Exception
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (“Act”) was signed by the President on December 17, 2010. Several provisions in the Act may impact not-for-profit organizations
12/27/2010
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Healthcare: Registration to Apply for EHR Incentives Will Begin January 3rd, 2011
As you may recall, the American Recovery and Reinvestment Act of 2009 ("Act"), which was signed into to law on February 17, 2009, provided financial incentives to those eligible health care providers that deploy and use certified electronic health record (EHR) technology.
12/22/2010
Focus on Healthcare: Physician Fee Schedule Cuts Postponed
During 2010, physicians had to deal with the uncertainty of the Medicare physician fee schedule being cut by 25%.
12/21/2010
Focus On Taxation: Tax Extenders Bill Signed Into Law
President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 on Friday, December 17, 2010 (the "Act").
12/16/2010
Focus on Accounting: FASB and IASB Convergence Update
The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) recently issued a progress report on the efforts to converge IFRS and US GAAP.
12/16/2010
Focus on Contractors: Proposed Revenue Recognition Changes
The Financial Accounting Standards Board (FASB) recently issued an exposure draft, Revenue from Contracts with Customers, which potentially could have significant affects on Contractors.
12/16/2010
Focus on Healthcare: Final Electronic Health Record Incentive Program Regulations
If you deploy and use certified electronic health record (EHR) technology, you may be eligible for financial incentives.
12/16/2010
Focus On Internal Audit: The International Professional Practices Framework (IPPF) Is Updated
The International Professional Practices Framework (IPPF), the blueprint of knowledge and guidance for the practice of internal auditing, undergoes a required review every three years by the Institute of Internal Auditors (IIA). This review keeps the Standards relevant and focused to address the needs of stakeholders.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 12/16/2010
Focus on Not-For-Profits: IRS Filing Relief Program
A number of small nonprofit organizations are at risk of losing their tax-exempt status because they failed to file required returns for 2007, 2008 and 2009.
12/16/2010
Focus on Public Companies: Progress Update on IFRS
While there aren’t specifics related to the U.S. implementation date for International Financial Reporting Standards (IFRS), the Office of the Chief Accountant for the SEC recently issued a progress update to the previously issued work plan.
12/16/2010
Focus On Public Sector: Missouri’s Energy Revolving Fund
Now in its 21st year, the Energy Revolving Fund has saved an estimated $117 million in energy costs for Missouri’s schools, universities, and government buildings.
12/16/2010
Focus On Real Estate: Tax Deal Provisions Affecting The Real Estate Industry
On Monday, December 6, 2010, President Obama announced a tentative deal with the Congressional Republicans on the tax cut package.
12/16/2010
Focus on State & Local Taxation: New Oklahoma Tax Enacted
Recently, the state of Oklahoma enacted a business activity tax (BAT) that will be in effect for tax years beginning in 2010, 2011, and 2012. In conjunction with the new BAT, Oklahoma has put a moratorium on their currently imposed franchise tax.
12/16/2010
UPDATED! Focus on Accounting: Lease Accounting Rules
The Financial Accounting Standards Board (FASB) has published an exposure draft of proposed accounting changes which will require the recognition of assets and liabilities on the balance sheet of entities to reflect lease obligations. The concept of an “operating” lease will be essentially eliminated.
12/15/2010
Focus on Benefit Plans: Participant Plan Loans
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 On September 16, 2010, the Financial Accounting Standards Board (FASB) approved the issuance of a new Accounting Standards Update (ASU), Reporting Loans to Participants by Defined Contribution Pension Plans.
12/15/2010
Focus on Contractors: Update on Multi-Employer Plan Disclosures
The Financial Accounting Standards Board (FASB) recently issued an Exposure Draft, Disclosure About An Employer’s Participation In A Multi-Employer Plan, which potentially could have significant affects on the construction industry. Many contractors contribute to multi-employer plans. The Exposure Draft proposes significant new disclosure requirements for companies participating in these multi-employer plans.
12/15/2010
Focus on Not-For-Profits: Health Insurance Premium Credits
The IRS recently announced the process for small not-for-profit entities to claim a tax credit for the health insurance premiums you pay on your employees.
12/15/2010
Focus On Real Estate: RubinBrown Publishes 2010 Apartment Statistical Analysis
It is with great enthusiasm that RubinBrown presents the 2010 Apartment Statistical Analysis. For over 30 years, our Real Estate Services Group has completed annual evaluations of financial operations and trends within the multifamily real estate industry both in the Midwest and throughout the country.
12/15/2010
Focus on State & Local Taxation: Current Tax Amnesty Programs
States and other taxing jurisdictions often offer amnesty programs to accelerate the collection of revenue. Some programs are only for non-filers, some are for only certain tax types and others may accept any outstanding tax due, even those previously assessed. Often under these programs, assessment of penalties are waived.
12/15/2010
Focus on Taxation: New Rules For 1099 Reporting
A little known Section in the Health Care Reform Act of 2010 will change the face of 1099 Information Reporting. Section 9006 of the Patient Protection and Affordable Care Act mandates 1099 reporting for services AND goods purchased in excess of $600 for all payees other than exempt organizations. The new law includes corporations that under current regulations are generally exempt from receiving a Form 1099.
12/06/2010
Focus On Accounting: Small Public Companies Exempt from SOX 404(b) Requirement
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 On Thursday July 15th the Senate narrowly approved a major financial regulatory reform package. The legislation was approved by the House on June 30th and President Barack Obama is expected to quickly sign it into law.
12/06/2010
Focus on Automotive: 2010 Accounting & Tax Dealership Checklist
RubinBrown highly values our relationships with automotive dealerships throughout the Midwest.
12/06/2010
Focus on Automotive: New Ruling on Uniform Capitalization Costs Will Benefit Auto Dealers
The Internal Revenue Service (IRS) has finally issued its long awaited final ruling on uniform capitalization costs under Code Section 263A, also referred to as UNICAP.
12/06/2010
Focus on Home Builders: The RubinBrown Blueprint Volume 7
There has been much discussion related to a tax on home sales that resulted from recently enacted health reform legislation. The new 3.8% Medicare contribution tax on net investment income does not take effect until years beginning after December 31, 2012.
12/06/2010
Focus on Hospitality & Gaming: RubinBrown Publishes 2010 Country Club Statistical Analysis
Our survey results represent responses from 16 St. Louis metropolitan area clubs with fiscal year ends that ranged between September 30, 2009 and March 31, 2010.
12/06/2010
Focus On Public Sector: New Three Percent Withholding For Government Entities
Starting on January 1, 2012, all Federal, state, and local government entities will be required to withhold tax at a rate of three percent from payments for property or service, deposit these withholdings with the IRS, and report them to the IRS and the payees. The requirement was originally set to go into effect in 2011 but was delayed for a year.
12/06/2010
Focus On Real Estate: 1099 Reporting On Rental Property
A provision of the recently signed Small Business Act of 2010 now requires additional tax reporting to the IRS.
12/06/2010
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus On Real Estate: New Recommendations For Missouri Tax Credit Programs
This past July, Missouri Governor Jay Nixon created a commission to review the state’s current tax credit programs and make recommendations for greater efficiency and enhanced return on Missouri’s investments in these programs.
12/06/2010
Focus On Small Business: Health Insurance Tax Credit
As you may know, the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (2010 Health Care Reform Act) became law in March of 2010.
12/06/2010
Focus On Small Business: IRS Eliminates Federal Tax Deposit Coupons
The US Treasury Department has begun an initiative to increase electronic transactions. Beginning January 1, 2011, most businesses currently using paper Federal Tax Deposit (FTD) coupons will be required to make their federal tax deposits electronically.
12/06/2010
Focus On Taxation: Small Business Jobs Act of 2010 Signed Into Law
On Monday, September 27, President Obama signed into law the Small Business Jobs Act of 2010 (the Act). The Act includes a number of important tax provisions that are expected to affect large and small businesses, as well as individuals.
12/06/2010
Focus On Taxation: W2 Reporting Of Health Coverage
The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (2010 Healthcare Reform Act) have brought about many changes. This legislation will require employers to report the value of employer-sponsored health coverage on each employee’s W-2. Reporting for 2011 is optional. Guidance on future reporting is expected before year end from the IRS.
12/06/2010
Healthcare Reform Seminar - Watch It Online!
RubinBrown recently hosted a seminar titled "How Healthcare Reform Will Affect You, Your Employees, and Your Business."
12/06/2010
Manufacturing & Distribution Seminar - Watch It Online!
RubinBrown recently hosted a seminar for our manufacturing and distribution clients and contacts titled "Innovation!"
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 12/06/2010
RubinBrown Hires Seven New Leaders
RubinBrown is proud to announce three new partners and four new managers to our management team.
08/25/2010
Denver’s Oldest CPA Firm Joins With RubinBrown LLP
Saltzman Hamma Nelson Massaro LLP, Denver’s oldest CPA firm, and RubinBrown LLP have joined together, effective Aug. 1, to form what is projected to be among the 50 largest accounting firms in the United States.
07/13/2010
Webinar Replay Now Available - Mid-Year Accounting & Tax Update
On July 13th, RubinBrown presented a Mid-Year Accounting & Tax Update Webinar. The latest FASB guidance and exposure drafts, along with tax reporting standards and recent legislation will have a dramatic effect on your business.
06/23/2010
Focus on Colleges & Universities: Proposed Federal Student Aid Rules
Designed to protect college students and taxpayers from abusive and fraudulent practices, the Department of Education has released a set of proposed rules related to federal student aid.
06/22/2010
Focus on Professional Services: Proposed Legislative Changes Could Affect S Corporations
Congress is considering legislation that could have a major effect on S Corporations, specifically those involved in professional services.
06/15/2010
Focus on Colleges & Universities: IRS Report on Compliance Project
The IRS recently issued an interim report on their findings from questionnaires received in late 2008 from 344 organizations. The subjects covered in the questionnaire dealt with a wide variety of topics as discussed below.
06/15/2010
Focus on Taxation: Illinois Legislators Pass Tax Amnesty Program; Bill Awaits Governor’s Action
On May 27th, a tax amnesty and collections bill (SB0377) passed both legislative houses adding Illinois to the list of states trying to accelerate tax receipts.
06/08/2010
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Not-For-Profits: Healthcare Reform & Not-For-Profit Organizations
With the signing of the two landmark bills comes sweeping changes to healthcare in the United States.
05/27/2010
Focus On Internal Audit: Changes To International Professional Practices Framework (IPPF)
The International Professional Practices Framework (IPPF) serves as the blueprint of knowledge and guidance for the practice of internal auditing.
05/27/2010
Focus on Taxation: New Missouri Law on the “Resale” Exemption Enacted
On May 12, 2010, Governor Nixon signed into law Missouri Senate Bill 928. The law became effective immediately.
05/27/2010
RubinBrown Partner Participating In Diversity Initiative
The St. Louis Business Diversity Initiative's Fellows Program is a leadership curriculum designed to address the interests and challenges of professionals of color as they work to develop and advance their careers.
05/26/2010
Focus on Not-For-Profits: 2009 Revisions to Form 990
The 2009 version of Form 990 is not as radically different as the 2008 version (which had been changed significantly from the 2007 version), but there are several important changes; and in many places, the instructions have been revised to clarify how organizations are to complete the Form and Schedules.
05/11/2010
Focus on Manufacturing: Advanced Energy Manufacturing Tax Credits
The “Security in Energy and Manufacturing Act of 2010,” otherwise known as the SEAM Act, was introduced last week in the U.S. Senate. A similar, now companion, bill was introduced in the House in mid-April.
04/19/2010
University of Missouri-St. Louis Recognizes Katcher
Audrey Katcher, CPA, CISA, a Business Advisory Services partner at RubinBrown, has been recognized in University of Missouri- St. Louis’ College of Business Administration Alumni Chapter’s 2010 Salute to Business Achievement Awards program.
04/13/2010
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus On Audit Standards: New Service Organization Reporting Standard Replacing SAS 70
Statement on Auditing Standards No. 70, Service Organizations (SAS 70) has served as the standard for service organizations’ internal control over financial reporting since 1992.
04/01/2010
Focus On Governmental Accounting: GASB Issues Exposure Draft On Accounting for Component Units
The Governmental Accounting Standards Board (GASB) recently issued an Exposure Draft (ED) of a proposed Statement, The Financial Reporting Entity. The proposed Statement would amend GASB Statements No. 14 and No. 34 to improve guidance for the inclusion, presentation, and disclosure of information about component units and equity interest transactions of a governmental entity.
03/26/2010
Focus On Real Estate: JUST RELEASED! Guidance On Section 1602, Low Income Housing Tax Credits
The IRS has just released Notice 2010-18 related to Section 1602 of the American Recovery and Reinvestment Act of 2009.
03/25/2010
UPDATED! Focus On Tax: The New Healthcare Reform Bill
The Patient Protection and Affordable Care Act (H.R. 3590), was passed by Congress on Sunday and signed into law today, March 23, 2010, by President Obama. This new healthcare legislation contains numerous tax provisions which may impact individuals and businesses.
03/18/2010
Focus On Tax: Hiring Incentives to Restore Employment (HIRE) Act
On March 18, 2010, President Obama signed into law the “Hiring Incentives to Restore Employment Act” (“HIRE Act”). The principal purpose of the HIRE Act is to create an immediate incentive for businesses to hire unemployed individuals.
03/08/2010
Focus on Not-For-Profits: Arts Organizations – Identifying Potential Unrelated Trades or Businesses
Given the wide variety of activities conducted by arts organizations, it becomes increasingly difficult to distinguish which activities fall under the IRS’s definition of an unrelated trade or business.
03/05/2010
Focus On Real Estate: First Annual Report on the Economic Impact of the Federal Historic Tax Credit
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 An encouraging new study of the federal historic tax credit (HTC) was just released by Rutgers University Center for Urban Policy Research.
03/04/2010
Focus on Not-For-Profits: Important Update on 403(b) Employee Benefit Plans
Many not-for-profits organizations are now subject to additional compliance requirements related to the sponsorship and oversight of 403(b) employee benefit plans. Regulations were passed in late 2007 by the Department of Labor (DOL) which eliminated previous exemptions related to the Form 5500 for 403(b) plans.
02/28/2010
Focus on Accounting: SEC Approves Statement on Global Accounting Standards
On February 24, 2010, the SEC announced their support for a single set of high-quality globally accepted accounting standards, indicating that it would benefit U.S. investors.
01/31/2010
Focus on Health Care: Electronic Health Record Incentive Program
As a part of the American Recovery and Reinvestment Act of 2009 ("Act"), which was signed into to law on February 17, 2009, financial incentives were made available to those eligible healthcare providers that deploy and use certified electronic health record (EHR) technology.
01/26/2010
Focus On Taxes: Haiti Relief Donations Qualify as 2009 Tax Deduction
People who make charitable contributions providing for earthquake relief in Haiti can take a tax deduction for the contribution on their 2009 tax return instead of their 2010 return. This means you can receive an immediate tax benefit, rather than having to wait until you file next year’s return.
01/25/2010
Focus On Entrepreneurial Services: Procedures for S-Corporations
The following list contains procedures and reminders for treatment of specific items for S Corporations and S Corporation owners.
01/24/2010
Focus On Taxes: Roth Conversions
In 2010, Roth IRAs may become the retirement arrangement of choice for many taxpayers. This is because new tax rules now make these types of plans available and more attractive to many additional taxpayers.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 01/20/2010
Focus on Not-For-Profits: Selling More Scrip
Many not-for-profit organizations, including churches and other religious organizations, already sponsor scrip programs. A recent IRS ruling adds a potential new benefit to this fundraising tool. Scrip is substitute money. It is usually in the form of cards or certificates that can be used as cash at various merchants.
01/11/2010
Focus On Taxes: Illinois Repeals Previous Replacement Tax Code Change
On December 16, 2009, Illinois Gov. Pat Quinn (D) signed legislation, effective immediately, repealing a law change that would have subjected businesses operating as professional service partnerships, LLPs or LLCs to an additional tax on profits.
12/03/2009
Focus on Healthcare: Medicare’s Recovery Audit Contractor Program for 2010
For the past three years, the Center of Medicare and Medicaid Services (CMS) has been piloting a program to review claims paid under the Medicare program.
11/10/2009
Focus on Home Builders: The RubinBrown Blueprint Volume 6
The President signed the Worker, Homeownership, and Business Assistance Act of 2009 on Friday, November 6th, which is expected to boost the housing recovery and help struggling businesses recover.
10/19/2009
Focus on Home Builders: The RubinBrown Blueprint Volume 5
Having attended the Fall NAHB Board meeting last week, the mood of industry appears to provide some glimpse of optimism.
10/08/2009
Focus on Healthcare: Proposed Regulations Reduce the Physician Fee Schedule by 21 percent in 2010
As Congress debates healthcare reform, the Center for Medicare & Medicaid Services (CMS) continues to issue regulations to implement laws that are currently in place.
05/06/2009
Focus on Automotive: Recent Missouri Income Tax Ruling Affects Dealerships
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 A recent ruling by the Missouri Supreme Court adds some clarity to the calculation of a Missouri dealership’s taxable income.
05/05/2009
Focus On Real Estate: Affordable Housing Update
On May 4th, the Department of Housing and Urban Development (HUD) and Treasury Department released much anticipated guidance on the Tax Credit Assistance Program (TCAP) and Exchange Programs created by the American Reinvestment and Recovery Act of 2009, signed by President Obama on February 17, 2009.
05/03/2009
Focus on Not-For-Profits: FASB Staff Position No. 117-1
On August 6, 2008, the Financial Accounting Standards Board (FASB) issued FASB Staff Position No. 117-1 (FSP 117-1). This pronouncement clarifies various financial reporting matters related to donor-restricted endowments held by not-for-profit organizations operating in states that have enacted the Uniform Prudent Management of Institutional Funds Act of 2006.
03/16/2009
Focus on Health Care: American Recovery and Reinvestment Act of 2009
On February 13, 2009, Congress passed the American Recovery and Reinvestment Act of 2009 ("Act").
03/10/2009
Focus On Public Sector: GASB Issues New Statement on Fund Balance Reporting
On March 11, 2009 the Governmental Accounting Standards Board (GASB) issued GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. Statement 54 is intended to provide financial report users information about fund balance by making available more structured fund balance classifications, and by clarifying the definitions of existing governmental fund types.
02/18/2009
Focus on Automotive: American Recovery and Reinvestment Act of 2009
On February 13, 2009, Congress passed the American Recovery and Reinvestment Act of 2009 (“Act”). President Obama signed the Act into law on February 17, 2009. The Act provides a series of direct spending and tax incentives for individuals and businesses to jump start the U.S. economy.
02/18/2009
Focus on Contractors: American Recovery and Reinvestment Act of 2009
On February 13, 2009, Congress passed the American Recovery and Reinvestment Act of 2009 (“Act”). President Obama signed the Act into law on February 17, 2009. The Act provides a series of direct spending and tax incentives for individuals and businesses to jump start the U.S. economy.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 02/17/2009
Focus on Real Estate: American Recovery and Reinvestment Act of 2009
On February 13, 2009, Congress passed the American Recovery and Reinvestment Act of 2009 ("Act"). President Obama signed the Act into law on February 17, 2009. The Act provides a series of Housing Credit provisions designed to stimulate the stalled affordable housing industry.
02/16/2009
Focus on Manufacturing & Distribution: Making Your Sustainability Initiative Profitable
The Environmental Protection Agency defines “sustainability” as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.” Often, corporate management has viewed green initiatives as expensive propositions that ultimately reduce the profitability of the business.
01/14/2009
Focus on Contractors: Cash – The Difference between Thriving and Surviving
For contractors, cash is far more than just dollars and cents. In these challenging economic times, more contractors will go out of business because of poor cash flow than from a lack of work or fading profits. In the leanest of times, a strong cash flow can be the difference between success and failure for a construction company.
01/14/2009
Focus on Health Care: Managing a Physician Practice in Uncertain Times
In July, Congress passed the Medicare Improvement for Patients and Provider Act of 2008. On July 1, 2008, the Medicare physician fee schedule was set to be reduced by 10.6 percent, with another 5.4 percent cut on Jan. 1, 2009.
01/13/2009
Focus on Manufacturing & Distribution: Research and Development Tax Credit
As part of the Emergency Stabilization Act of 2008 (Bailout Bill) passed by Congress Oct. 6, 2008, the Research and Development Tax Credit was extended through 2009. The credit was set to expire at the end of 2007, but with this extension, companies will be eligible to claim the credit in the 2008 and 2009 tax years.
01/13/2009
Focus on Not-For-Profits: Compensation Reporting Changes for the 2008 Versions of IRS 990 Forms
The new Form 990 has changed the requirements for reporting of compensation of officers, key employees and board members. There also are changes for reporting the top paid employees other than officers and key employees and for reporting the top paid independent contractors.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 01/11/2009
Focus on Home Builders: Economic Stimulus Update
House and Senate conferees completed work on final elements of the stimulus legislation early this morning. I would like to provide you with a brief overview of what is in the final legislative package, particularly as it relates to the housing community.
01/11/2009
Focus on Home Builders: Looking Up From the Bottom
The best statement that can be made about 2008 is that it is finally over! The worst economy in our lifetimes has certainly left much carnage to the national and local home building industry. Inconsistent to infrequent sales through the year seemed to be the norm.
01/11/2009
Focus On Public Sector: Detecting And Deterring Fraud In Local Governments
When one thinks of fraud, the corporate sector is typically the segment of the economy that first comes to mind. Fraud schemes at Enron, WorldCom and other companies have grabbed the headlines during the last decade, and in the process they have cost investors billions and resulted in major accounting overhauls, including the adoption of the Sarbanes-Oxley Act.
01/06/2009
Focus On Media & Entertainment: FAS 141R – Business Combinations
The new guidance under Statement of Financial Accounting Standards (SFAS) No. 141(R) – Business Combinations is a major change in the accounting treatment of acquisitions and mergers of businesses.
10/26/2008
Focus on Health Care: Highlights of the 2008 AICPA National Healthcare Industry Conference
The American Institute of Certified Public Accountants (AICPA) recently held the 2008 National Healthcare Industry Conference in San Diego, California.
10/12/2008
Focus on Media & Entertainment: Are You in Compliance with Payment Card Standards?
Credit and debit payment cards are convenient for consumers and businesses. They are used to pay for everything including concert tickets, cable and phone, newspaper and magazine subscriptions and many forms of advertising.
09/09/2008
Focus on Not-For-Profits: Preventing and Detecting Fraud
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The St. Louis Division of the Federal Bureau of Investigation recently announced that the former Chief Financial Officer of a well- respected worldwide charitable organization plead guilty to a scheme to defraud the organization of more than $800,000. In light of this news, it is instructive and timely to address the important role the Board of Directors of not-for-profit organizations have in strengthening internal controls.
09/01/2008
Focus on Manufacturing & Distribution: International Tax Traps for the Unwary - Part II
This article is the second installment of a periodic series that addresses common fact patterns involving international business operations that can result in unforeseen, adverse U.S. tax consequences. The topic of this installment is the “thin capitalization” provisions related to interest expense deductions for foreign subsidiaries on loans from their U.S. parent companies.
08/26/2008
Focus on Not-For-Profits: OMB Issues New Data Collection Form and Online Instructions
Every 3 years the Office of Management and Budget has the opportunity to revise the Data Collection Form (the Form or DCF) used for submitting to the Federal Clearing House A-133 report packages.
08/26/2008
Focus On Public Sector: OMB Issues New Data Collection Form and Online Instructions
Every 3 years the Office of Management and Budget has the opportunity to revise the Data Collection Form (the Form or DCF) used for submitting to the Federal Clearing House A-133 report packages.
08/25/2008
Focus on Not-For-Profits: Get Ready for the Redesigned Form 990!
The IRS has released advance copies of the redesigned Form 990 and the related instructions. For tax years beginning on or after January 1, 2008, the new Form 990 filed by most tax-exempt organizations will involve additional disclosures.
08/04/2008
Focus on Manufacturing & Distribution: First "Lean and Green" Summit
RubinBrown recently attended the first Lean and Green Summit in Boulder, Colorado. Discussions at the Summit were focused on implementing green practices into manufacturing and distribution businesses. The primary message of the Summit was to improve environmental sustainability while growing the bottom line.
07/30/2008
Focus on Real Estate: Victory for Housing and Financial Markets
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 On July 30, 2008, President George W. Bush signed into law H.R. 3221, the Housing and Economic Recovery Act of 2008.
07/29/2008
Focus on Home Builders: Housing Act Provides Tax Credits and Deduction for Home Owners
On July 30, 2008, the President signed the landmark housing bill H.R. 3221, Housing and Economic Recovery Act of 2008 (the Housing Act).
07/22/2008
Focus on Public Sector: GASB Issues Statement No. 53
The use of derivatives in the Public Sector is becoming more common, specifically when it comes to issuing variable rate long- term debt. These financial arrangements are often highly complex and require specialized knowledge, but can be useful to governments by more effectively and predictably managing their exposure to a specific risk.
03/10/2008
Focus on Automotive: IRS Provides Safe Harbor LIFO
Over the years as truck and crossover vehicles have become more popular; most dealers have seen a shift in their mix of inventory from cars to trucks. Most recently, this trend has begun to reverse.
02/10/2008
Focus on Manufacturing & Distribution: International Tax Traps for the Unwary
This article is the first in a series that will address common fact patterns involving international business operations that can result in unforeseen, adverse U.S. tax consequences. We welcome Richard Shapland, Partner, International Tax Services, of Virchow Krause & Company, LLP as a guest author in this series.
11/09/2007
Focus on Manufacturing & Distribution: Transfer Pricing - A Double-Edged Sword
For federal income tax purposes, related party transactions with foreign entities must be at arms length. Many states have adopted these federal principles. Most foreign countries also have specific transfer pricing rules. The theory of transfer pricing looks at the relative profit and cost recognized by two related parties.
10/17/2007
Focus on Manufacturing & Distribution: Missouri Enacts Manufacturing Inputs Exemption
On June 13, 2007, Governor Matt Blunt signed into law Senate Bill 30 (SB 30), which became effective on August 28, 2007. SB 30 modifies several provisions of Missouri’s sales and use tax laws.
08/01/2007
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Focus on Home Builders: Section 199: Domestic Production Activities Deduction - New Rules and Clarifications
The Domestic Production Activities Deduction (Section 199) became effective for the calendar year 2005 tax returns. Legislative changes as well as additional regulations issued by Treasury have provided some additional guidance on this deduction.
08/17/2006
Focus on Not-For-Profits: New Tax Law Affects Exempt Organizations
On August 17, 2006, the President signed the Pension Protection Act of 2006. Included within this bill are many of the 2005 Senate Finance Committee proposals for charities and other tax-exempt organizations. Some of the changes provide incentives for donors.
07/03/2006
Focus on Manufacturing & Distribution: 199 Production Activities Deduction New Rules
At this time, many of us have filed our 2005 tax returns reflecting the first year of the Production Activities Deduction. Legislative changes as well as additional regulations issued by Treasury have provided interesting guidance on the Production Activities Deduction. This e-focus article includes a description of some of these changes for manufacturers.
02/01/2006
Focus on Automotive: IRS Announcement Affects Heavy Equipment Dealers
The IRS recently announced that it will allow heavy equipment dealers to value their parts inventories using replacement cost.
10/01/2005
Focus on Home Builders: News From the NAHB Convention and Managing Direct Construction Costs
Welcome to this special edition of FOCUS on Home Builders, a newsletter service RBG provides to our valued clients. This enews provides an update of the January National Association of Home Builders annual convention held recently in Orlando.
10/01/2005
Focus on Home Builders: Safe Harbor in Code Sec. 199 Proposed Regs Gives Home Builders and Developers Some Relief
For tax years beginning after 2004, taxpayers can claim a deduction to offset income from domestic manufacturing and other domestic production activities.
02/01/2005
Focus on Not-For-Profits: St. Louis County Personal Property Tax
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Many charitable and educational organizations (section 501(c)(3) organizations) that did not receive a personal property tax declaration in prior years have received such a form from the St. Louis County assessor's office in the past few weeks.
01/01/2005
Focus on Home Builders: New Reporting Requirement
The Financial Accounting Standards Board (FASB) issued a new financial reporting requirement that may have a farreaching impact on home builders. Home builders often enter into lot option contracts and joint ventures as a normal course of business.
11/01/2004
Focus on Not-For-Profits: New Tax Law Affects Charities and Donors
The American Jobs Creation Act contains provisions which may affect tax exempt organizations. In particular, organizations that receive deductible charitable donations and their donors will have additional reporting burdens.
FASB Issues Guidance On Service Concession Arrangements
The FASB has issued Accounting Standards Update (ASU) 2014-05 to provide accounting guidance for service concession arrangements.
FASB Issues Residential Real Estate Foreclosure Guidance
Emerging Issues Task Force Issue 13-E sought to define "in substance repossession or foreclosure" because of the diversity in practice regarding when entities were reclassifying loans receivable to other real estate owned (OREO) (instead of as a loan receivable).
FASB Issues Proposed ASU Related To Troubled Debt Restructurings By Creditors
The FASB has issued a proposed Accounting Standards Update (ASU), Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) Classification of Certain Government-Guaranteed Residential Mortgage Loans upon Foreclosure.
“Fiscal Cliff” Legislation Extends Tax Incentives
In January 2013, President Obama signed The American Taxpayer Relief Act of 2012 into law.
Among other provisions, this legislation retroactively reinstated, to January 1, 2012, several corporate tax provisions that had expired. These include, for example, the research and development tax credit and certain renewable energy incentives.
2012 AICPA National Conference on Current SEC and PCAOB Developments
On December 3-5, 2012, representatives of the SEC, FASB, PCAOB, IASB, and AICPA spoke at the annual AICPA National Conference on Current SEC and PCAOB Developments held in Washington, D.C.
2013 AICPA National Conference on Current SEC and PCAOB Developments
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Representatives of the Securities and Exchange Commission (SEC), the Public Company Accounting Oversight Board (PCAOB), the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) shared their views on various accounting, auditing and reporting issues at the AICPA National Conference on Current SEC and PCAOB Developments in December 2013 in Washington, DC. a test
Accounting And Review Services Committee Proposes Clarity Changes
The Accounting and Review Services Committee (ARSC) of the AICPA has undertaken a clarity project that intends to make compilation and review standards easier to read, understand and apply.
In May 2010, the ARSC approved a project to revise all existing compilation and review standards in the Codification of Statements on Standards for Accounting and Review Services (AR sections).
This project is similar to the one undertaken by the Auditing Standards Board (ASB) to redraft all auditing sections in Codification of Statements on Auditing Standards. In connection with this project, the ARSC recently issued an Exposure Draft which proposes changes to Statements on Standards for Accounting and Review Services (SSARSs).
Accounting And Review Services Committee Publishes Exposure Draft
The Accounting and Review Services Committee (ARSC) of the AICPA has released an Exposure Draft which contains changes in requirements when an accountant is engaged to prepare financial statements, as well as a repositioning of the compilation service which differs from current standards.
Accounting Change to Benefit LIHTC
The housing industry is fully engaged and supporting a white paper which was commissioned by a 20-member task force, led by Raymond James Tax Credit Funds, Inc.
The white paper proposal encouraged the Financial Accounting Standards Board to change the accounting treatment of LIHTC investments and outlines the reasons why public companies investing in LIHTC properties should be able to change the way they report these investments on their financial statements.
The paper was recently presented to the FASB’s Emerging Industry Task force (EITF), which, fortunately, has the proposal on their March 14 meeting.
RubinBrown is hopeful that the accounting rules surrounding LIHTC investments change. Currently, companies must report the investment (cost) of housing credit investments pre-tax while the benefits are reported below the line, in the tax section of the financial statements. Simply put, it’s bad financial statement geography because it reduces a company’s pre-tax earnings while the benefits from the investment are reported after tax.
On a net basis, there is no difference; however the current accounting treatment misreports the investment cost from the benefits of investing in housing credits. The result of current accounting rules makes it more difficult to attract investors as public companies and their investors are focused on pre-tax earnings.
The industry is hoping for a change that would allow companies to report in their financial statements both the cost and benefits either above the pre-tax line or both below in the tax section. There is no question in the LIHTC industry that an accounting change would attract more capital for investment in affordable housing.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Additional Disclosures For Government Tax Incentives Now Required
The GASB has issued Statement 77, Tax Abatement Disclosures. The purpose of this statement is to provide financial statement users with further information related to a government’s tax abatement agreements, and the impact of such agreements on the government’s financial condition.
AICPA Issues New Accounting And Audit Guide For Not-For-Profit Entities
The AICPA recently issued a newly updated Accounting and Audit Guide for Not-For-Profit (NFP) Entities.
The new guide, updated as of March 1, 2013, is the first comprehensive revision of the guide since 1996 and reflects all changes to audit standards resulting from the AICPA Clarity Project (Statements on Auditing Standards 122 through 127) which are effective for audits of financial statements for periods ending on or after December 15, 2012.
AICPA Issues Updated Guidance On External Auditor’s Responsibilities When Using The Work Of Internal Auditors
The Auditing Standards Board of the AICPA has released updated guidance on the use of internal audit work in an external audit. SAS No. 128 applies to financial statement audits performed for periods ending on or after December 15, 2014.
American Taxpayer Relief Act
As we started the New Year, Congress completed passage of the American Taxpayer Relief Act, which side steps certain elements of the fiscal cliff and included a number of tax extenders important to the affordable housing, economic development, and renewable energy industries.
9% Housing Tax Credit (LIHTC) Floor Extension Last week, both the Senate and the House passed the fiscal cliff compromise. We were fortunate that the fiscal cliff compromise included the 9% housing credit floor for all projects receiving a LIHTC allocation made before January 1, 2014.
This important provision fixes the credit percentage at 9%. This provides the industry a two-year extension for projects receiving 2013 allocations. The provision, however, does not apply to forward allocations for 2014 or after, even if received in 2013.
The affordable housing industry worked very hard to ensure this provision would be included and many thanks go to the strong leadership and support by Senators Maria Cantwell (D-WA) and Olympia Snowe (R-ME) who were able to include the provision in the Senate finance committee bill.
New Markets Tax Credit (NMTC) Extension The bill extends for two years the NMTC, permitting a maximum annual amount of qualified equity investments of $3.5 billion each year. The extension is for years 2012 and 2013.
Bonus Depreciation The new tax legislation extends the 50% bonus depreciation for certain eligible properties placed in service before 2014.
Basic Allowance For Housing The bill also renews a provision of the Housing and Economic Recovery Act of 2008, to exclude Basic Allowance for Housing (BAH) payments received by military personnel from the definition of household income for purposes of determining income eligibility for LIHTC buildings (9% and 4%).
The provision applies to income determinations for projects that receive housing credit allocations before 2014 and to bond- financed projects placed in service before 2014.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Renewable Energy The deadlines for facilities generating electricity from certain renewable energy sources are extended and modified for qualification of the Section 45 production tax credit.
The bill extends the deadline for wind power facilities to wind facilities placed in service before 2014. It modifies the deadline for other types of qualified energy facilities to those that start construction before 2014.
Hurricane Sandy Relief On December 28, the Senate passed a $60.4 billion Hurricane Sandy supplemental spending bill, H.R. 1. The bill originated as a general appropriations measure in the House and was amended in the Senate as a legislative vehicle for considering Hurricane Sandy supplemental appropriations.
The Senate-passed version includes the administration-requested $17 billion for disaster Community Development Block Grants.
Last week, House Republican leaders passed a bill to provide $9 billion to shore up the National Flood Insurance Program and the House is to consider a $51 billion Hurricane Sandy supplemental spending bill on January 15.
House Ways and Means Committee member Bill Pascrell (D-NJ) introduced H.R. 6683, the Hurricane Sandy Tax Relief Act of 2012, which would waive certain mortgage revenue bond program requirements, increase allocations of LIHTC and NMTC, and provide new tax-exempt bond authority for “Hurricane Sandy bonds” for use in disaster-impacted areas.
What’s Next? Although the bill is very positive, there is still much work to do by the affordable housing, economic development and renewal energy industries as we face a brutal debate on tax reform.
The next several months are crucial as this compromise only provides temporary relief of the pending “cliff.” Although very positive, the bill only delays for two months the automatic spending cuts (sequester) that would have began on January 2.
Congress is already gearing up for what will likely be some of the toughest negotiations we seen on spending. Congress will need to determine whether or not it wants to make changes to avoid the sequester.
In February, the debt limit will be reached which will require action by the Congress to increase the country’s borrowing limit to prevent default while March brings expiration of continuing resolution that has kept the government operating.
For a printable summary of the entire tax bill, click here.
ARSC Withdraws Recent Compilation Exposure Draft
The Accounting and Review Services Committee (ARSC) has voted to withdraw the exposure draft of the proposed Statement on Standards for Accounting and Review Services (SSARSs) Association With Unaudited Financial Statements; Compilation of Financial Statements; and Compilation of Financial Statements—Special Considerations.
The decision to withdraw the exposure draft was in response to comment letters that were received.
CDFI Fund Awards Another $3.5 Billion In NMTCs
The new allocation will benefit 85 CDEs across the country.
Information on the chosen CDEs can be found by clicking here.
Change is Coming to the Leadership of the SEC
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 After nearly four years leading the SEC, Mary Schapiro stepped down as chairman on December 14, 2012.
Conflict Minerals and the Court Challenge
Companies should be assessing what they may be required to disclose if their products contain conflict minerals while monitoring a legal challenge to the new SEC rule.
The US Chamber of Commerce and the National Association of Manufacturers have challenged the rule in the US Court of Appeals for the District of Columbia Circuit. The SEC’s conflict minerals rule is effective for calendar year 2013 (with initial reports required by June 2, 2014).
COSO Framework Updated
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has issued its updated Internal Control– Integrated Framework (Framework) and related illustrative documents. On December 15, 2014, the Framework will officially replace the original Internal Control – Integrated Framework (the original framework), which dates back to 1992.
The original framework has been used by companies, non-profit organizations, governments, and regulators, becoming the global standard used to design, implement, and assess the effectiveness of a system of internal controls.
COSO Issues Exposure Draft Of Internal Control Over External Financial Reporting: Compendium Of Approaches And Examples
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) issued an Exposure Draft of the proposed Internal Control-Integrated Framework on December 19, 2011, and the public comment period closed March 31, 2012.
COSO Publishes Thought Paper On Importance Of COSO Frameworks
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has published a thought paper on the importance of COSO frameworks.
EDGAR Filer Manual Updated
The SEC has published a final rule adopting revisions to the Electronic Data Gathering, Analysis, and Retrieval System (EDGAR) Filer Manual to reflect updates to the EDGAR system.
Expect Further Guidance Related To Revenue Recognition
The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have decided to propose clarifications to the revenue recognition guidance issued in 2014.
Extremely Low-Income Households Rent A Significant Amount
A study completed by the Moelis Institute for Affordable Housing Policy at New York University indicates that households earning 30% or less of the area median income comprise over 40% of LIHTC units, which indicates the program may be more impactful than most people realize.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 For the full article, please click here.
FAF Seeks Comments On PCC
The Board of Trustees of the Financial Accounting Foundation (FAF) is conducting a review of the Private Company Council (PCC) to determine whether, after three years of existence, the PCC is meeting its primary responsibilities and fulfilling its mission. fake article
FASB Amends Codification To Reflect SAB 115
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2015-08, Business Combinations (Topic 805): Pushdown Accounting-Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115.
FASB Amends Codification To Reflect SEC Staff Announcement
The FASB has issued ASU 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements-Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting.
FASB Amends Principal Versus Agent Revenue Guidance
The FASB has issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).
FASB And PCC Issue Private Company Framework
As part of their ongoing commitment to consider the needs of users and preparers of private company financial statements, the Financial Accounting Standards Board (FASB) and the Private Company Council (PCC) have issued the Private Company Decision-Making Framework (Guide).
FASB Approves Deferral Of New Revenue Recognition Standard
In April 2015, the Financial Accounting Standards Board (FASB) issued for public comment a proposed Accounting Standards Update (ASU), Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.
FASB Concludes Project On Leases
The FASB has released an ASU designed to improve financial reporting over lease transactions. The ASU will impact all companies and other organizations that lease assets, including real estate, equipment, and other personal property.
FASB Deferring Certain Nonpublic Benefit Plan Disclosures
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Stakeholders have raised concerns that certain disclosure requirements in paragraph 820-10-50-2 of the Accounting Standards Codification, which were effective for nonpublic entities for annual periods beginning after December 15, 2011, would potentially provide proprietary information about nonpublic entities through the dissemination of their employee benefit plans’ financial statements on the regulator’s website. The FASB has issued ASU 2013-09 to address these concerns.
FASB Defers Implementation Of New Revenue Recognition Standard
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.
FASB Eliminates Development Stage Entity Guidance
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation.
FASB Eliminates The Concept Of Extraordinary Items
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2015-01: Income Statement —Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.
FASB Exposes Private Company Decision-Making Framework For Public Comment
The FASB, along with the Private Company Council (PCC), has issued an Invitation to Comment: Private Company Decision- Making Framework: A Guide for Evaluating Financial Accounting and Reporting for Private Companies, seeking stakeholder input on the proposed private company decision-making framework.
The framework is intended to serve as a guide for the FASB and the PCC in determining whether and in what circumstances to provide alternative recognition, measurement, disclosure, display, effective date, or transition guidance for private companies reporting under U.S. generally accepted accounting principles (GAAP).
FASB Extends Comment Deadline On Proposal For Accounting For Credit Losses On Financial Assets
The FASB has extended the comment deadline for its proposal to improve financial reporting about expected credit losses on loans and other financial assets held by banks, financial institutions, and other public and private organizations.
The new comment deadline on the proposed ASU, Financial Instruments—Credit Losses (Subtopic 825-15) is May 31, 2013.
FASB Issues Accounting Guidance For Certain Electricity Contracts
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2015-13, Derivatives and Hedging (Topic 815): Application of the Normal Purchases and Normal Sales Scope Exception to Certain Electricity Contracts within Nodal Energy Markets.
FASB Issues Accounting Standards Update For Private Companies
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The Financial Accounting Standards Board (FASB) has issued an update to U.S. Generally Accepted Accounting Principles that provides an alternative for private companies on accounting for intangible assets acquired in a business combination. This Accounting Standards Update (ASU) had been proposed by the Private Company Council and subsequently endorsed by the FASB.
FASB Issues Accounting Standards Update For Private Companies Related To Goodwill
The FASB has issued an update to GAAP that provides an alternative for private companies on accounting for goodwill. This ASU had been proposed by the PCC and subsequently endorsed by the FASB.
FASB Issues Accounting Standards Update For Private Companies Related To Interest Rate Swaps
The FASB has issued an update to GAAP that provides an alternative for private companies on accounting for certain interest rate swaps. This ASU had been proposed by the PCC and subsequently endorsed by the FASB.
FASB Issues Accounting Standards Update No. 2014-01—Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects
The FASB has issued ASU No. 2014-01 – Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects.
FASB Issues Accounting Standards Update On Revenue Recognition
The Financial Accounting Standards Board (FASB) has issued an Accounting Standards Update (ASU) bringing to a conclusion its project to clarify principles for recognizing revenue.
FASB Issues Accounting Standards Update Related To Going Concern Uncertainties
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern
FASB Issues Accounting Standards Update Related To Repurchase Agreements
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.
FASB Issues Accounting Standards Update Related To Troubled Debt Restructurings
The Financial Accounting Standards Board (FASB) recently issued Accounting Standards Update (ASU) 2014-14, Receivables – Troubled Debt Restructurings by Creditors: Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure.
FASB Issues Accounting Standards Update To Change Presentation Of Debt Issuance Costs
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.
FASB Issues ASU For The Derecognition Of A Prepaid Stored-Value Product Liability
The FASB has issued an ASU titled, Liabilities - Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Cards.
FASB Issues ASU On Balance Sheet Offsetting
In order to add clarity and eliminate diversity in practice, the Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.
The ASU is intended to reduce unintended costs while providing users with the information necessary to understand the extent to which certain financial instruments are offset pursuant to master netting arrangements.
FASB Issues ASU On Comprehensive Income Reclassifications
The FASB recently issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.
This ASU applies to all public and nonpublic entities that report items of other comprehensive income except for Not-For-Profit entities that report under Subtopic 958-205, Not-For-Profit Entities – Presentation of Financial Statements.
FASB Issues ASU Related To Joint And Several Liability Arrangements
The Financial Accounting Standards Board (FASB) has released Accounting Standards Update (ASU) 2013-04 titled Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date, which amends FASB ASC 405 related to this topic.
ASU 2013-04 attempts to fill a void in technical literature related to a lack of specific guidance over recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements.
FASB Issues ASU Related To Parent’s Accounting For The Cumulative Translation Adjustment
The FASB has issued ASU 2013-05 titled Foreign Currency Matters (Topic 830) - Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.
The ASU is intended to resolve diversity in practice about whether Subtopic 810-10, Consolidation—Overall, or Subtopic 830- 30, Foreign Currency Matters—Translation of Financial Statements, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a consolidated foreign entity.
FASB Issues ASU To Amend Various SEC Paragraphs
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The FASB has issued ASU No. 2012-03, Technical Amendments and Corrections to SEC Sections.
FASB Issues ASU To Clarify Fair Value Disclosure Exemption
In February 2013, the FASB issued ASU 2013-03, Financial Instruments: Clarifying the Scope and Applicability of a Particular Disclosure to Nonpublic Entities.
This ASU clarifies when it is appropriate for nonpublic entities to disclose the level within the fair value hierarchy for certain assets and liabilities in the statement of financial position.
FASB Issues Consolidation Guidance For Legal Entities Such As LLCs, Limited Partnerships, And Securitization Structures
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which is intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions).
FASB Issues Definition Of Public Business Entity
The FASB has issued Accounting Standards Update (ASU) 2013-12, Definition of a Public Business Entity: An Addition to the Master Glossary.
FASB Issues Definition Of Public Business Entity
The FASB has issued Accounting Standards Update (ASU) 2013-12, Definition of a Public Business Entity: An Addition to the Master Glossary.
FASB Issues Disclosure Guidance For Insurance Companies That Issue Short-Duration Contracts
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2015-09, Financial Services - Insurance (Topic 944): Disclosures about Short-Duration Contracts.
FASB Issues Exposure Draft On Disclosure Of Going Concern Uncertainties
The FASB recently issued a proposed Accounting Standards Update (ASU), Presentation of Financial Statements (Topic 205): Disclosure of Uncertainties about an Entity’s Going Concern Presumption.
This proposed ASU is intended to improve GAAP guidance on management’s responsibilities for evaluating and disclosing going concern uncertainties and reduce inconsistencies among footnote disclosures by improving the timing, nature and extent of going concern footnote disclosures.
FASB Issues Exposure Draft On Government Assistance
The FASB has issued an exposure draft titled, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance to create greater transparency around financial reporting of government assistance agreements that businesses enter into with governments.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 FASB Issues Exposure Draft On Materiality
The FASB has issued an Exposure Draft titled, Notes to Financial Statements (Topic 235), Assessing Whether Disclosures Are Material, which is a part of its disclosure framework project.
FASB Issues Exposure Draft On Tax Effects Of Intra-Entity Asset Transfers
The Financial Accounting Standards Board (FASB) has issued an Exposure Draft titled, Income Taxes (Topic 740): Intra-Entity Asset Transfers.
FASB Issues Exposure Draft Related To Accounting For Employee Share-Based Payments
The Financial Accounting Standards Board (FASB) has issued an Exposure Draft, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.
FASB Issues Exposure Draft Related To Novations On Existing Hedge Accounting Relationships
The Financial Accounting Standards Board (FASB) has issued an Exposure Draft, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.
FASB Issues Exposure Draft Related To Repurchase Transactions
The FASB has published an exposure draft titled Transfers and Servicing (Topic 860) - Effective Control for Transfers with Forward Purchase Agreements to Repurchase Assets and Accounting for Repurchase Financings.
The proposals in the exposure draft would modify the financial reporting of transactions such as repurchase agreements and securities lending transactions, which involve a transfer of a financial asset and a contemporaneous agreement that both entitles and obligates the transferor to repurchase or redeem the transferred asset.
FASB Issues Final Accounting Guidance For Low Income Housing Tax Credit Investments
The FASB has issued ASU 2014-01, Investments – Equity Method and Joint Ventures (Topic 323) – Accounting for Investments in Qualified Affordable Housing Projects.
FASB Issues Guidance For Certain Share-Based Payments
The Financial Accounting Standards Board (FASB) recently issued Accounting Standards Update (ASU) 2014-12, Compensation —Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.
FASB Issues Guidance For Consolidating A Collateralized Financing Entity
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 FASB Issues Guidance For Employers With Defined Benefit Plans
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2015-04, Compensation – Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets. The FASB undertook this project as part of an on-going effort to reduce complexity in accounting standards.
FASB Issues Guidance For Episodic Television Series
The FASB has issued ASU 2019-02, Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment— Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials.
FASB Issues Guidance For Hybrid Financial Instruments
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity.
FASB Issues Guidance For Not-For-Profit Entities Regarding Services Received From Personnel Of An Affiliate
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2013-06, Not-for-Profit Entities: (Topic 958): Services Received from Personnel of an Affiliate.
The ASU clarifies the guidance that not-for-profit entities apply for recognizing and measuring services received from personnel of an affiliate.
FASB Issues Guidance On Fees Paid In A Cloud Computing Arrangement
In Accounting Standards Update (ASU) 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, the Financial Accounting Standards Board (FASB) issued accounting guidance for fees paid by customers in a cloud computing arrangement.
FASB Issues Guidance On Liquidation Accounting
The FASB has issued ASU 2013-07, Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting.
Currently, there is minimal guidance in U.S. generally accepted accounting principles (GAAP) that addresses when it is appropriate, or how to apply, the liquidation basis of accounting.
The amendments in this ASU clarify when an entity should apply the liquidation basis of accounting. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting.
FASB Issues Guidance On Pension And Postretirement Benefit Cost
The FASB has issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715). The purpose of the standard is to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. The standard applies to all
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 employers, including not-for-profit entities that offer to their employees defined benefit pension plans, other postretirement benefit plans, or other types of benefits accounted for under Topic 715.
FASB Issues Guidance On Pushdown Accounting
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2014-17, Business Combinations (Topic 805): Pushdown Accounting.
FASB Issues Guidance On Service Concession Arrangements
The FASB has issued Accounting Standards Update (ASU) 2014-05 to provide accounting guidance for service concession arrangements.
FASB Issues Guidance Related To Financial Reporting Of Discontinued Operations
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in the ASU change the criteria for reporting discontinued operations and expand disclosure requirements in this area.
FASB Issues Guidance Related To Novations On Existing Hedge Accounting Relationships
The FASB has issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.
FASB Issues Guidance Related To Unrecognized Tax Benefits
The FASB has issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.
FASB Issues Improvements To Accounting For Costs Of Implementation Activities Performed In Certain Cloud Computing Arrangements
The FASB has issued ASU 2018-15 (amendment to Subtopic 350-40) titled Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.
FASB Issues Inventory Guidance
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory regarding the subsequent measurement of inventory as part of its Simplification Initiative.
FASB Issues New Guidance For Financial Instruments
The FASB has issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 FASB Issues Proposal For The Derecognition Of Certain Prepaid Stored-Value Cards
The Financial Accounting Standards Board (FASB) has issued an Exposure Draft, Liabilities - Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Cards. The proposal would provide guidance to issuers of certain prepaid stored-value cards on how and when to derecognize liabilities associated with those cards for breakage. Breakage is the dollar value of prepaid cards that is not redeemed by cardholders.
FASB Issues Proposal On Derivatives And Hedging
The FASB has issued an Exposure Draft titled Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes.
The proposed amendments would affect all entities, both public and nonpublic, that elect to apply hedge accounting of the benchmark interest rate under Topic 815, Derivatives and Hedging.
FASB Issues Proposal On Disclosure Framework Project
The Financial Accounting Standards Board (FASB) has issued a proposed framework intended to improve its process for evaluating existing and future disclosure requirements in notes to financial statements.
FASB Issues Proposal On Fees Paid In A Cloud Computing Arrangement
The Financial Accounting Standards Board (FASB) recently issued a proposed Accounting Standards Update (ASU), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.
FASB Issues Proposal On Presentation Of An Unrecognized Tax Benefit
The FASB has issued for public comment a proposed ASU, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward or Tax Credit Carryforward Exists.
The objective of the amendments in this proposed ASU is to eliminate the diversity in practice in the presentation of unrecognized tax benefits in the statement of financial position in instances in which a net operating loss carryforward or a tax credit carryforward exists because the guidance in Topic 740, Income Taxes, is not explicit.
FASB Issues Proposal To Clarify The Assessment Of Contingent Call (Put) Options
The Financial Accounting Standards Board (FASB) has issued an Exposure Draft, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments for public comment. Comments on the proposal are due by October 5, 2015.
FASB Issues Proposed Accounting Standards Update For Collateralized Financing Entities
The FASB has issued proposed ASU, Consolidation (Topic 810): Measuring the Financial Liabilities of a Consolidated Collateralized Financing Entity.
The amendments in this proposed ASU would apply to reporting entities that are required to consolidate a collateralized financing
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 entity under the Variable Interest Entity Subsections of Subtopic 810-10.
FASB Issues Proposed Accounting Standards Update On Service Concession Arrangements
The FASB has issued an Exposure Draft of a proposed ASU on accounting for Service Concession Arrangements (Topic 853). Service concession arrangements, which come in different forms, are becoming increasingly popular with public sector entities.
A service concession arrangement is an agreement entered into by a public sector entity grantor with an operating entity who operates the public sector grantor’s infrastructure and provides services to the entity.
FASB Issues Proposed Accounting Standards Update Related To Development Stage Entities
The Financial Accounting Standards Board (FASB) has issued for public comment an Exposure Draft that addresses private company stakeholder concerns raised about the relevance and complexity of aspects of U.S. generally accepted accounting principles (GAAP) related to development stage entities.
As reported in the October 2013 Accounting & Auditing Alert, this Private Company Council (PCC) proposal had been previously endorsed by the FASB.
FASB Issues Proposed Accounting Standards Update Related To Development Stage Entities
The Financial Accounting Standards Board (FASB) has issued for public comment an Exposure Draft that addresses private company stakeholder concerns raised about the relevance and complexity of aspects of U.S. generally accepted accounting principles (GAAP) related to development stage entities.
FASB Issues Proposed Accounting Standards Update To Improve Codification
The Financial Accounting Standards Board (FASB) recently published an Exposure Draft titled Technical Corrections and Improvements.
FASB Issues Proposed Amendments To Employee Benefit Plan Accounting
The Financial Accounting Standards Board (FASB) has issued for public comment a document that includes three proposed Accounting Standards Updates to address suggestions submitted by stakeholders on how to reduce complexity in employee benefit plan accounting, which is consistent with the FASB’s Simplification Initiative.
FASB Issues Proposed ASU Clarifying The Scope Of Offsetting Assets And Liabilities Disclosures
The FASB has issued a proposed Accounting Standards Update (ASU), Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.
The proposed amendments would clarify the scope of ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.
FASB Issues Proposed ASU Related To Hybrid Financial Instruments
The FASB has issued a proposed ASU titled Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity.
FASB Issues Proposed ASU Related To Hybrid Financial Instruments
The FASB has issued a proposed ASU titled Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity.
FASB Issues Proposed ASU Related To Stock Compensation
The FASB has issued a proposed ASU related to share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period.
FASB Issues Proposed ASU Related To Stock Compensation
The FASB has issued a proposed ASU related to share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period.
FASB Issues Proposed ASU Related To Troubled Debt Restructurings By Creditors
The FASB has issued a proposed Accounting Standards Update (ASU), Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) Classification of Certain Government-Guaranteed Residential Mortgage Loans upon Foreclosure.
FASB Issues Proposed Clarification To Fair Value Disclosure Exemption
The Financial Accounting Standards Board (FASB) has issued for public comment a proposed Accounting Standards Update (ASU) related to fair value disclosure requirements.
The proposed ASU is intended to clarify the scope and applicability of a disclosure exemption that is specific to nonpublic entities that resulted from the issuance of ASU No. 2011-04.
FASB Issues Proposed Guidance For Employers With Defined Benefit Plans
The Financial Accounting Standards Board (FASB) recently issued a proposed Accounting Standards Update (ASU), Compensation—Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets.
FASB Issues Proposed Improvements Related To Pensions And Other Postretirement Benefit Plans
The FASB has issued two Exposure Drafts intended to improve financial reporting by employers related to defined benefit pension and other postretirement benefit plans.
FASB Issues Pushdown Accounting Proposal
The Financial Accounting Standards Board (FASB) has issued a proposed Accounting Standards Update (ASU), Business Combinations (Topic 805): Pushdown Accounting.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 FASB Issues Residential Real Estate Foreclosure Guidance
Emerging Issues Task Force Issue 13-E sought to define "in substance repossession or foreclosure" because of the diversity in practice regarding when entities were reclassifying loans receivable to other real estate owned (OREO) (instead of as a loan receivable).
FASB Issues Revised Exposure Draft On Lease Accounting
The FASB has issued its second Exposure Draft as part of its project to change the manner in which entities account for lease transactions.
The first Exposure Draft was issued in August 2010 and generated over 800 comment letters. The FASB conducted extensive redeliberations on this topic prior to releasing the second Exposure Draft.
The International Accounting Standards Board (IASB) issued its proposal simultaneously with the FASB’s action. The revised Exposure Drafts for both organizations are nearly identical.
FASB Issues Standard Clarifying Investment Company Status And Accounting
The FASB has issued an Accounting Standards Update (ASU) that sets forth a new approach for determining whether a public or private company is an investment company. The ASU also clarifies the characteristics and sets measurement and disclosure requirements for an investment company.
FASB Issues Technical Corrections And Improvements ASU
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2015-10, Technical Corrections and Improvements, to correct differences between original guidance and the Accounting Standards Codification, provide guidance clarification and reference corrections, and make minor improvements affecting a variety of topics.
FASB Moves Forward On Management’s Assessment Of Going Concern
At its November 7, 2012 Board meeting, the Financial Accounting Standards Board (FASB) adopted a new financial reporting model for management’s assessment of going concern and related disclosures.
FASB Permits The Use Of The Fed Funds Effective Swap Rate As A Benchmark Interest Rate
The FASB has issued Accounting Standards Update (ASU) 2013-10, Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes.
FASB Proposes Amendments To The Accounting Standards Codification Related To Financial Instruments
As reported in last month’s Accounting & Auditing Alert, the FASB has issued for public comment a revised draft standard to improve and converge the financial reporting requirements of IFRS and U.S. GAAP for financial instruments.
Subsequent to the issuance of that exposure draft, the FASB issued a companion document reflecting changes to the ASC that would result from the proposed ASU on financial instruments.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 FASB Proposes Change For Adjustments Made To Provisional Amounts Recognized In A Business Combination
The Financial Accounting Standards Board (FASB) has issued for public comment an Exposure Draft titled, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.
FASB Proposes Change To Presentation Of Debt Issuance Cost
The Financial Accounting Standards Board (FASB) has issued proposed Accounting Standards Update (ASU), Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Cost.
FASB Proposes Changes Related To Adoption Of Private Company Accounting Alternatives
The FASB has issued an Exposure Draft which proposes changing the effective date and transition guidance related to ASU 2014-02, Intangibles-Goodwill and Other (Topic 350); ASU 2014-03, Derivatives and Hedging (Topic 815); ASU 2014-07, Consolidation (Topic 810): Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements; or ASU 2014-18, Business Combinations (Topic 805): Accounting for Identifiable Assets in a Business Combination.
FASB Proposes Changes To Accounting Guidance For Low Income Housing Tax Credit Investments
The FASB has released an Exposure Draft of proposed amendments that would modify the conditions that public and private companies are required to meet to elect the use of the effective yield method of accounting for qualified low income housing tax credit (LIHTC) investments.
The proposed ASU is titled, Investments – Equity Method and Joint Ventures (Topic 323) – Accounting for Investments in Qualified Affordable Housing Projects.
FASB Proposes Changes To Fair Value Measurement Disclosures
The FASB has issued an exposure draft titled, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The FASB issued the amendments in this proposal as part of the disclosure framework project.
FASB Proposes Changes To Reporting Discontinued Operations
The Financial Accounting Standards Board (FASB) has issued a proposal to improve financial reporting about discontinued operations of major business lines or major geographic areas of operations for public and private companies, and not-for-profit organizations.
This proposed Accounting Standards Update (ASU) is titled, Presentation of Financial Statements (Topic 205)—Reporting Discontinued Operations.
FASB Proposes Changes To The Not-For-Profit Financial Statement Reporting Model
The Financial Accounting Standards Board (FASB) has issued an Exposure Draft that would substantially revise the format and content of the financial statements of not-for-profit organizations.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 FASB Proposes Clarification Related To New Revenue Recognition Guidance
The FASB has issued an Exposure Draft titled Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).
FASB Proposes Clarifications For Cash Flows Presentation
The FASB has issued an Exposure Draft titled, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.
FASB Proposes Clarifications To The Definition Of A Business
The FASB has issued an exposure draft, Business Combinations (Topic 805): Clarifying the Definition of a Business, to clarify the definition of a business. The FASB’s objective is to add guidance to assist organizations with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses.
FASB Proposes Deferring Certain Disclosures For Nonpublic Employee Benefit Plans
The FASB has issued a proposed ASU which would defer indefinitely the effective date of certain required disclosures in ASU 2011-04 (Topic 820) of quantitative information about the significant unobservable inputs used in Level 3 fair value measurements for investments held by a nonpublic employee benefit plan in its plan sponsor’s own nonpublic entity equity securities.
FASB Proposes Deferring Effective Date Of New Revenue Recognition Standard
The Financial Accounting Standards Board (FASB) has issued an Exposure Draft which proposes deferring the effective date for the new revenue recognition standard established by Accounting Standards Update (ASU) 2014-09. This deferral would apply to both public and nonpublic entities.
FASB Proposes Elimination Of Extraordinary Items
The Financial Accounting Standards Board (FASB) has released an Exposure Draft titled Income Statement—Extraordinary and Unusual Items: Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.
FASB Proposes Further Guidance Related To Revenue Recognition
The Financial Accounting Standards Board (FASB) has issued an Exposure Draft which proposes clarifications to the revenue recognition guidance issued in 2014. These proposals are a result of issues that have emerged from discussions of the Transition Resource Group for Revenue Recognition.
FASB Proposes Guidance Related To Classification Of Deferred Taxes
The FASB has issued for public comment an Exposure Draft titled, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. These proposed changes would simplify balance sheet presentation by requiring deferred tax liabilities and assets to be classified as noncurrent.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 FASB Proposes Guidance Related To Troubled Debt Restructurings By Creditors
The FASB has published an Exposure Draft titled Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Collateralized Mortgage Loans upon a Troubled Debt Restructuring.
The proposal provides clarification regarding the accounting treatment for situations in which a creditor obtains one or more of a debtor’s assets in satisfaction of all or part of a receivable.
FASB Proposes Improvements Related To New Revenue Recognition Guidance
The FASB has issued an Exposure Draft intended to improve the guidance on collectibility, noncash consideration, and completed contracts at transition in the new revenue recognition standard.
FASB Proposes Improvements To Accounting For Credit Losses On Financial Assets
The FASB has issued for public comment a proposal intended to improve financial reporting about expected credit losses on loans and other financial assets held by banks, financial institutions, and other public and private organizations.
The proposed ASU, Financial Instruments - Credit Losses (Subtopic 825-15), includes a new accounting model intended to require more timely recognition of credit losses, while also providing additional transparency about credit risk. Trade receivables, loans, debt securities, lease receivables and any other receivables that represent the contractual right to receive cash would generally be affected by the proposed ASU.
FASB Proposes Improvements To Accounting For Insurance Contracts
The FASB has issued for public comment a proposal to improve financial reporting of insurance contracts, including measurement of insurance liabilities and the related effect on the statement of comprehensive income.
Proposed ASU, Insurance Contracts (Topic 834), would apply to all contracts that meet the definition of an insurance contract, not just those written by insurance companies.
FASB Proposes Improvements To Recognition And Measurement Of Financial Assets And Liabilities
The FASB has issued for public comment a proposal to improve financial reporting by providing a comprehensive measurement framework for classifying and measuring financial instruments.
The FASB developed the proposed ASU, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, as part of its broader joint project with the International Accounting Standards Board (IASB) to improve and converge the accounting for financial instruments.
FASB Proposes Simplification For Equity Method Of Accounting
The Financial Accounting Standards Board (FASB) has issued an Exposure Draft, Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Equity Method of Accounting.
FASB Proposing To Clarify Disclosures For Investment Companies
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The Financial Accounting Standards Board (FASB) recently published an Exposure Draft titled, Financial Services - Investment Companies (Topic 946): Disclosures about Investments in Other Investment Companies.
FASB Proposing To Simplify Fair Value Reporting For Certain Investments
The Financial Accounting Standards Board (FASB) has issued a proposed Accounting Standards Update (ASU), Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).
FASB Proposing To Simplify Measurement Of Inventory
The Financial Accounting Standards Board (FASB) has issued an Exposure Draft titled, Inventory: Simplifying the Measurement of Inventory.
FASB Provides Clarification Related To Call And Put Options
The FASB has issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments, which is intended to simplify the embedded derivative analysis for debt instruments containing contingent call or put options.
FASB Provides Expected Implementation Dates For Anticipated New Standards
The FASB recently issued expected timelines for implementation of several new accounting standards expected to be issued over the next six months.
FASB Provides Final Approval Of Two Private Company GAAP Exceptions
The Financial Accounting Standards Board has voted to endorse two recent decisions reached by the Private Company Council related to the accounting for goodwill and interest rate swaps.
These two decisions will incorporate into U.S. generally accepted accounting principles, alternative accounting treatments for private companies, should they choose to elect them. The final text of the standards is expected to be released shortly.
FASB Publishes Proposed Definition Of A Public Business Entity
The FASB has published a proposed ASU which would define the term public business entity for purposes of determining which types of nonpublic entities qualify for alternative accounting and reporting guidance.
The proposed ASU would amend the Accounting Standards Codification to add a single definition of the term public business entity for use in future GAAP.
FASB Ratifies New Accounting For Affordable Housing Investments
The Financial Accounting Standards Board has approved the proposed changes in accounting for investments in affordable housing projects.
The effective date of the change is for years beginning after December 15, 2014, but early implementation is allowed. For details on the accounting changes, please click here.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 FASB Removes Effective Dates And Preferability Assessment For Private Company Guidance
The FASB has issued ASU 2016-03 which eliminates the effective dates and allows a private company to forgo a preferability assessment the first time it elects any of the following four private company accounting alternatives.
FASB Seeks Input On Disclosures For Certain Hybrid Financial Instruments
The Financial Accounting Standards Board (FASB) has issued an Exposure Draft titled, Derivatives and Hedging (Topic 815): Disclosures about Hybrid Financial Instruments with Bifurcated Embedded Derivatives.
FASB Simplifies Accounting For Business Combinations
The FASB has issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.
FASB Simplifies Fair Value Disclosures For Investments In Certain Entities That Calculate Net Asset Value Per Share
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). The amendments apply to reporting entities that elect to measure the fair value of an investment using the net asset value per share (or its equivalent) practical expedient.
FASB Simplifies Guidance Related To Deferred Taxes
The FASB recently issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.
FASB Simplifies Plan Accounting
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965) - I. Fully Benefit-Responsive Investment Contracts; II. Plan Investment Disclosures, and III. Measurement Date Practical Expedient.
FASB Simplifies Transition To Equity Method Of Accounting
The FASB has issued ASU 2016-07, Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.
FASB Updates Glossary Terms
The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2014-06, Technical Corrections and Improvements Related to Glossary Terms.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 FASB Votes To Issue Exposure Draft Related To Development Stage Entities
The Financial Accounting Standards Board (FASB) recently voted to issue an Exposure Draft to simplify the accounting for development stage entities.
The Private Company Council, which was established to work with the FASB, has been a strong advocate for reducing the complexity of accounting for development stage entities.
FASB Votes To Move Forward With Final Standard On Revenue Recognition
The FASB has voted to move forward with preparing a final standard on revenue recognition. The final standard is expected to be issued during the first quarter of 2014.
FASB Votes To Move Forward With Final Standard On Revenue Recognition
The FASB has voted to move forward with preparing a final standard on revenue recognition. The final standard is expected to be issued during the first quarter of 2014.
FASB Votes To Propose Deferring Effective Date Of New Revenue Recognition Standard
The Financial Accounting Standards Board (FASB) has voted to propose deferring the effective date for the new revenue recognition standard established by Accounting Standards Update (ASU) 2014-09. This deferral would apply to both public and nonpublic entities.
Financial Accounting Foundation Issues Annual Report
The Financial Accounting Foundation (FAF), the parent body of the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB), has released the 2013 Annual Report.
Focus on Cyber Security: W-2 Scams are on the Rise
Tax season is in full swing and cyber criminals are actively phishing for W-2s. Cyber criminals want easy targets with large amounts of data, so they are sending out emails asking for your W-2s. They want the Social Security Numbers (SSNs), income amounts, and other private information so they can file false tax returns, steal identities or sell the information on the dark web.
GASB Issues Concepts Statement On Measurement Of Assets And Liabilities
The Governmental Accounting Standards Board (GASB) has issued Concepts Statement No. 6, Measurement of Elements of Financial Statements.
GASB Issues Exposure Draft On Fair Value Measurement
The Governmental Accounting Standards Board (GASB) has issued for public comment an Exposure Draft of a proposed statement addressing accounting and financial reporting issues related to fair value measurements.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 GASB Issues Exposure Draft On Pension Issues
The GASB has issued for public comment an exposure draft titled, Pension Issues (an amendment of GASB Statements No. 67, No. 68, and No. 73).
GASB Issues Exposure Draft Related To Application Of Statement No. 68
The Governmental Accounting Standards Board (GASB) has issued an Exposure Draft that addresses an issue in applying the provisions of Statement No. 68.
That issue relates to contributions made subsequent to the measurement date of the beginning net pension liability.
GASB Issues Exposure Draft Related To Certain Component Units
The Governmental Accounting Standards Board (GASB) has issued an exposure draft titled, Blending Requirements for Certain Component Units.
GASB Issues Exposure Draft Related To Fiduciary Activities
The GASB recently issued an exposure draft which seeks to improve guidance regarding what constitutes fiduciary activities for accounting and financial reporting purposes.
GASB Issues Exposure Draft Related To Pensions Provided Through Certain Multiple-Employer Defined Benefit Pension Plans
The GASB has issued an exposure draft titled, Accounting and Financial Reporting for Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans.
GASB Issues Fair Value Guidance
The Governmental Accounting Standards Board (GASB) has issued Statement No. 72, Fair Value Measurement and Application, effective for periods beginning after December 15, 2015.
GASB Issues Guidance For Irrevocable Split-Interest Agreements
The GASB has issued Statement No. 81, Irrevocable Split-Interest Agreements. Split-interest agreements are a specific type of giving arrangement used by donors to provide resources to two or more beneficiaries.
GASB Issues Guidance For Pensions Provided Through Certain Multiple-Employer Defined Benefit Pension Plans
The Governmental Accounting Standards Board has issued GASB Statement No. 78, Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans. The statement addresses an issue related to certain types of pension plans involving both governmental and non-governmental employers that arose during the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions.
GASB Issues Guidance On Blending Certain Component Units Into Financial Statements
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The GASB has issued Statement No. 80 which is designed to clarify how certain component units incorporated as not-for-profit corporations should be presented in a state or local government’s financial statements. The statement further clarifies the display requirements in GASB Statement No. 14, The Financial Reporting Entity.
GASB Issues Guidance Related To Certain Investment Pools
The GASB has issued Statement No. 79, Certain Investment Pools and Pool Participants. Statement No. 79 establishes criteria for an external investment pool to qualify for making the election to measure all of its investments at amortized cost for financial reporting purposes, and for governments participating in such pools to measure their investments in the pool at amortized cost.
GASB Issues Proposals On Concepts For Measurement
The GASB has issued two proposals for public comment that address how governments measure assets and liabilities within their financial statements.
The first is an Exposure Draft titled Measurement of Elements of Financial Statements, and proposes concepts that will guide the GASB’s decisions when establishing future standards for how state and local governments would determine the dollar amount at which to report assets and liabilities.
The second is a Preliminary Views titled Fair Value Measurement and Application, and describes how fair value should be defined and measured, which assets and liabilities should be measured at fair value, and what information about fair value should be disclosed in the notes to the financial statements.
GASB Issues Statement No. 69, Government Combinations And Disposals Of Government Operations
The Governmental Accounting Standards Board (GASB) recently issued Statement No. 69 to provide guidance to state and local governments for combinations and disposals of government operations. This Statement will enable governments to determine if a combination is a government acquisition, a government merger, or a transfer of operations.
GASB Issues Statement No. 70, Accounting And Financial Reporting For Nonexchange Financial Guarantees
The Governmental Accounting Standards Board has issued Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees.
This statement is intended to improve the recognition, measurement and disclosure guidance for governments that have extended or received financial guarantees that are nonexchange transactions.
GASB Issues Statement No. 71 To Address Issue Caused By Statement No. 68
The Governmental Accounting Standards Board (GASB) has issued GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. Statement No. 71 addresses an issue regarding the application of the transition provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pensions.
Under Statement No. 68, state and local government employers will be required to recognize the underfunded status of defined benefit pension plans as a net pension liability. Statement No. 68 will be effective for fiscal years beginning after June 15, 2014.
GASB Issues Statements On Other Postemployment Benefits
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The Governmental Accounting Standards Board (GASB) has issued three statements regarding accounting and financial reporting for postemployment benefits.
GASB Proposes Guidance For Asset Retirement Obligations
The GASB has proposed a statement that addresses asset retirement obligations. An asset retirement obligation is a legally enforceable liability associated with the retirement of a tangible capital asset. Under this proposed statement, a government would recognize a liability and a corresponding deferred outflow of resources when the liability is legally incurred and reasonably estimable.
GASB Proposes Guidance For Certain External Investment Pools
The Governmental Accounting Standards Board (GASB) has issued an exposure draft, Accounting and Financial Reporting for Certain External Investment Pools.
GASB Proposes Guidance For Tax Abatement Disclosures
The Governmental Accounting Standards Board (GASB) has issued an Exposure Draft which would provide new requirements related to tax abatement disclosures.
GASB Proposes New GAAP Hierarchy For State And Local Governments
The Governmental Accounting Standards Board (GASB) has issued a proposed statement, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments.
GASB Proposes Single Approach For Reporting Leases
The GASB has released its Exposure Draft on leases. The Exposure Draft defines that a lease is a contract that conveys the right to use a nonfinancial asset for a period of time in an exchange or exchange-like transaction.
GASB Publishes Exposure Drafts On Other Postemployment Benefits
The Governmental Accounting Standards Board (GASB) has issued three Exposure Drafts regarding accounting and financial reporting for postemployment benefits.
GASB Releases Exposure Draft On Accounting For Irrevocable Split-Interest Agreements
The Governmental Accounting Standards Board (GASB) has issued an exposure draft that provides guidance for irrevocable split-interest agreements.
GASB Releases Preliminary Views On Leases
The Governmental Accounting Standards Board (GASB) has issued a Preliminary Views on major issues related to leases based on the principle that all leases are financings of the right to use an underlying asset. This Preliminary Views is a first step towards
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 issuing an Exposure Draft of a Statement of Governmental Accounting Standards but is not an Exposure Draft.
GASB Seeks Input On Fiduciary Responsibilities
The Governmental Accounting Standards Board (GASB) has issued for public comment a Preliminary Views, Financial Reporting for Fiduciary Responsibilities.
GASB Simplifies GAAP Hierarchy For State And Local Governments
The Governmental Accounting Standards Board (GASB) has issued Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments.
GASB Votes Not To Delay The Implementation Of Statement No. 68
The Governmental Accounting Standards Board (GASB) has voted unanimously not to delay the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions.
Highly Inflationary Economies
The SEC staff has indicated that companies should treat the following countries as highly inflationary economies, as defined under US GAAP:
Venezuela Belarus South Sudan
Historic Boardwalk Case Overturned
In a startling move, the U.S. Court of Appeals for the 3rd Circuit filed an opinion this week which has overturned the U.S. Tax Court's decision made in January 2011 on the Historic Boardwalk case.
HUD Announces Significant Restructuring Of Its Field Offices
HUD is undergoing a restructuring within its Office of Multifamily Housing Programs and Office of Field Policy and Management.
The changes include consolidated multifamily hubs across the country and will result in the closing of 16 offices.
To read more about the restructuring, please click here.
Internal Review Ordered to Improve Federal Historic Tax Credit
Last January in Detroit, Michigan, Secretary of the Interior Ken Salazar asked the National Park Service (NPS) to conduct an internal review of the Federal Historic Preservation Tax Incentives Program to ensure that the program is achieving its intended goals.
Salazar ordered a review of the rules governing the use of historic preservation tax credits in order to make the credits easier to use in urban communities and to strengthen partnerships with local communities and State Historic Preservation Offices.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Click here to view the Department of Interior's press release on this topic.
IRS Extends Relief To Victims Of Hurricane Sandy
In the wake of Hurricane Sandy, the IRS is temporarily removing low-income housing tax credit tenant income limitations to provide project owners with the ability to rent vacant units to displaced individuals and families.
To view the entire article, please click here.
IRS Guidance On Historic Tax Credits Forthcoming
RubinBrown was in attendance at last week’s Historic Tax Credit Conference in Washington, D.C. to listen to the IRS’ Craig Gerson discuss the upcoming guidance on the federal historic tax credit program.
The issue is a top priority for the IRS and favorable guidance in the form of a revenue procedure that will provide a safe harbor is expected to be available in the coming weeks. RubinBrown will keep you posted when the guidance arrives!
IRS Issues Final Version Of Tangible Property Regulations
As released in a previous RubinBrown E-Focus Newsletter, these new regulations will apply to all forms of for-profit businesses and will require additional one-time filings effective for tax years beginning January 1, 2014. Taxpayers are asked to work closely with their tax advisors regarding proper compliance and elections to make.
For the full article, please click here.
IRS To Issue Guidance On Historic Tax Credits
In light of the infamous Historic Boardwalk case, the IRS plans to issue a safe harbor revenue procedure to address a variety of concerns that have arisen in the industry.
For more information, please click here.
Leadership Biographies
Jim is chairman of the board of RubinBrown LLP. He joined the firm in 1973 and has served as head since 1989. He also currently serves as chairman of BakerTilly International, the world’s eighth largest network of independent accounting firms.
LIHTC Survey Results
In January, the RubinBrown Real Estate Services Group surveyed our clients, colleagues and friends to learn what they thought on these five questions related to the 2013 LIHTC:
1. Do you believe that LIHTC equity will be more or less available in 2013? 2. Do you expect LIHTC equity pricing to increase, fall or remain flat? 3. What are you considering the most for your business growth in 2013? 4. How concerned are you about pending tax reform and what that may or may not do to LIHTC? 5. What debt sources do you plan to utilize in 2013? The results of the survey have summarized. You may click here to view the results.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Long Awaited IRS Guidance Issued on Historic Tax Credits
On Monday afternoon, the IRS released Revenue Procedure 2014-12, which discusses the safe harbor requirements of allocations of rehabilitation tax credits under Section 47. The Revenue Procedure is in effect for allocations of credits to partners in historic tax credit partnerships beginning December 30, 2013.
For a full discussion of the requirements and the Revenue Procedure, please click here.
Low Income Housing Tax Credit Changes Proposed In Connection With The Fiscal 2014 Budget Plan
Various changes have been proposed by the current administration related to fiscal year 2014 budgets and initiatives. Changes include modifications to the formulas related to the 4% and 9% credit rates as well as making the credit beneficial to REITs.
For further discussion, please click here.
Missouri Governor Nixon Continues To Urge Tax Credit Reform
Upon signing the job creation tax credit expansion into law, Nixon expressed his interest in focusing on credit programs with “economic return” to the state but did not indicate intentions for the low income and historic tax credit programs.
To read the full article, please click here.
Missouri Historic Tax Credit Supporters Gear Up for Next Round
Missouri Governor Jay Nixon has reactivated the Tax Credit Review Commission which was created in 2010.
The commission has had several meetings, and is planning to present a new report to the Governor by December 15th. The report is expected to be used as a basis for new legislation which will impact state tax credits in Missouri. The Historic Tax Credit (HTC) is very much a part of the discussion. The drama continues on HTC’s and expect much more debate leading up to this spring's legislative session in Jefferson City. Stay tuned.
For more information, click here.
Missouri Senate Modifies House Bill To Cut Historic Tax Credits
Missouri Senator Eric Schmitt has proposed modifications to House Bill 698 that was passed last week to substantially cut Historic Tax Credits in Missouri.
Senator Schmitt’s amended version of this bill, which increases the proposes 4% cap back to $50M (from $5M) and drops the House’s eradication of AHAP credits, passed in the Senate on Thursday, May 2nd, and now returns to the House for conference.
To track the progress of this bill, please click here.
Mortality Assumptions In Benefit Obligations—Society Of Actuaries Issues New Mortality Tables
In 2009, the Society of Actuaries (SOA) undertook the task of revisiting U.S. mortality assumptions for pension plans. After releasing two exposure drafts on February 3, 2014, RP-2014 Mortality Tables and Mortality Improvement Scale MP-2014, the SOA has now finalized the results of its research. The final RP-2014 and MP-2014 reports issued on October 27, 2014 are
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 largely unchanged from the exposure drafts and suggest materially increased life expectancies.
New Guidance Simplifies Employee Share-Based Payment Accounting
The FASB has issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share- Based Payment Accounting.
NEW! RubinBrown Industry Economic Report
As a service to our clients, contacts, and friends, RubinBrown's industry leaders have compiled a report that summarizes the current economic state of the industries we serve.
PCAOB Adopts Auditing Standard On Related Parties
The Public Company Accounting Oversight Board (PCAOB) has adopted a new auditing standard and amendments to other auditing standards to strengthen auditor performance requirements in three critical areas of the audit: related party transactions, significant unusual transactions, and a company's financial relationships and transactions with its executive officers.
PCAOB Adopts Auditing Standard Related To Communications With Audit Committees
The Public Company Accounting Oversight Board (PCAOB) has adopted Auditing Standard No. 16, Communications with Audit Committees.
PCAOB Adopts Standards And Amendments For Broker-Dealers
The Public Company Accounting Oversight Board (PCAOB) has adopted attestation standards pertaining to audits of brokers and dealers, an auditing standard for supplemental information accompanying financial statements audited according to PCAOB standards, and related amendments to other PCAOB standards.
PCAOB Adopts Standards and Amendments for Broker-Dealers.
The PCAOB has adopted attestation standards pertaining to audits of brokers and dealers, an auditing standard for supplemental information accompanying financial statements audited according to PCAOB standards, and related amendments to other PCAOB standards.
PCAOB Approves Reorganization Of Auditing Standards
The Public Company Accounting Oversight Board (PCAOB) has approved the reorganization of its auditing standards to implement a topical system that integrates the existing interim and PCAOB-issued auditing standards.
PCAOB Issues Report on Inspection Observations
The PCAOB has released a report summarizing inspection observations related to deficiencies in registered public accounting firms’ audits of the internal control over financial reporting (ICFR) at public companies.
PCAOB Issues Staff Audit Practice Alert on Auditing Revenue
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 The Public Company Accounting Oversight Board (PCAOB) issued a Staff Audit Practice Alert on auditing revenue due to significant audit deficiencies it frequently observes during inspections.
PCAOB Issues Supplemental Request For Comment On Proposal For Reorganization Of Auditing Standards
The Public Company Accounting Oversight Board (PCAOB) has issued a supplemental request for comment on its proposal for the reorganization of PCAOB auditing standards.
PCAOB Proposes A New Auditing Standard To Enhance The Auditor's Reporting Model
The Public Company Accounting Oversight Board (PCAOB) has proposed for public comment a new auditing standard to enhance the auditor's reporting model.
The proposed standard would retain the pass/fail model in the existing auditor's report, but would provide additional information to investors and other financial statement users about the audit and the auditor.
PCAOB Publishes Standard-Setting Agenda
The PCAOB’s Office of the Chief Auditor (OCA) has published its updated standard-setting agenda as of September 30, 2013.
The periodic development and updating of the agenda represents an effort in which the OCA takes into consideration multiple factors.
PCAOB Reproposes Amendments To Require Disclosure Of The Engagement Partner And Certain Participants In The Audit
During December 2013, the Public Company Accounting Oversight Board ("PCAOB" or the “Board”) reproposed for public comment amendments to the PCAOB’s auditing standards that would provide greater transparency into audits of public companies, brokers, and dealers about the engagement partner and certain other participants in the audit.
The reproposed amendments follow up the PCAOB’s October 2011 proposal and July 2009 Concept Release.
PCAOB Reproposes Amendments To Require Disclosure Of The Engagement Partner And Certain Participants In The Audit
During December 2013, the Public Company Accounting Oversight Board ("PCAOB" or the “Board”) reproposed for public comment amendments to the PCAOB’s auditing standards that would provide greater transparency into audits of public companies, brokers, and dealers about the engagement partner and certain other participants in the audit.
PCAOB Reproposes Auditing Standard on Related Parties and Related Amendments
The Public Company Accounting Oversight Board (PCAOB) has reproposed for public comment an auditing standard, Related Parties, and related amendments to other standards to address areas that have been contributing factors in a number of financial reporting frauds.
PCC Continues Progress On Private Company Financial Reporting Issues
During its most recent meeting, the Private Company Council (PCC) addressed several issues of importance related to private
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 company financial reporting.
PEEC Releases Exposure Draft
The Professional Ethics Executive Committee (PEEC) of the AICPA has released an Exposure Draft of a new definition of the term “those charged with governance” under the AICPA Code of Professional Conduct.
The new definition is being proposed to conform to provisions using the term “those charged with governance” adopted by the Auditing Standards Board (ASB) in its effort to converge with International Standards on Auditing (ISAs).
The International Ethics Standards Board of Accountants (IESBA) also adopted a final definition recently, and the PEEC proposal is substantially equivalent to these definitions.
Possible Modifications To Accounting For Low Income Housing Tax Credit Investments Under GAAP
The Financial Accounting Standards Board Emerging Issues Task Force has presented a draft of criteria that an entity would be required to meet in order to implement the effective yield method for low income tax credit investments under GAAP rules (Topic 323).
The deadline to comment on this draft is set for June 17, 2013.
To read the exposure draft, please click here.
Private Company Council Meeting Recap
At its most recent meeting on February 13, 2015, the Private Company Council (PCC) continued its work on certain financial reporting issues. Following is a brief summary of items addressed by the PCC at that meeting.
Private Company Council Votes To Finalize Two Private Company Standards
The Private Company Council (PCC) has voted to finalize two alternatives within U.S. Generally Accepted Accounting Principles (GAAP) for private companies related to accounting for interest rate swaps and, separately, accounting for goodwill in a business combination.
The alternatives would permit a private company (i.e., a nonpublic entity) to apply simplified accounting treatments that will reduce cost and complexity in accounting and reporting.
Proposed Rule Change Would Require Internal Audit Function for NASDAQ Listed Companies
On February 20, 2013, NASDAQ submitted a proposed rule change to the U.S. Securities and Exchange Commission (SEC) that would require NASDAQ listed companies to establish and maintain an internal audit function.
The proposed rule, open for comment through March 29, 2013, would bring the NASDAQ into alignment with the New York Stock Exchange (NYSE), which already requires its listed companies to have an internal audit function.
Reminder: SEC Filings On Conflict Minerals Due In May
Time is almost up for SEC registrants required to report on their use of conflict minerals (tin, tungsten, tantalum, or gold).
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Revenue Recognition Standard
The FASB and IASB Boards have completed their substantive redeliberations on their joint revenue proposal and plan to issue a new standard near the end of June 2013.
The standard generally will require entities in all industries to allocate the total consideration to which they expect to be entitled to each distinct performance obligation on the basis of relative standalone selling prices.
RubinBrown Partner Featured In AICPA Video
RubinBrown Partner Audrey Katcher is featured in an AICPA video, "Managing Controls, Risk in the Cloud."
RubinBrown Partner Featured In Latest Affordable Housing Finance Publication
Real Estate Partner-In-Charge Bryan Keller was recently published. His article addressing FASB’s proposed accounting changes for the LIHTC industry and investments in tax credit entities is featured in both Affordable Housing Finance’s latest magazine edition and on their website.
For the full article, please click here.
RubinBrown Presents At The Illinois Governor’s Conference On Affordable Housing
Maureen Pardo, senior tax manager, was a featured panel speaker on Preservation Financing issues at the Illinois Governor’s Conference on Affordable Housing.
The conference took place on April 23rd and 24th, 2013 and was sponsored by the Illinois Housing Development Authority and the Illinois Housing Council.
For more information about the conference and about the Illinois Housing Council, please click here.
RubinBrown Study Featured In National Market Report
RubinBrown’s 2012 Apartment Statistical Analysis was featured in an article by National Real Estate Investor related to the improving the affordable housing market. The article also captures a number of comments from Bryan Keller, Partner-In-Charge of the RubinBrown Real Estate Services Group.
To read the full article, please click here.
To download a copy of the 2012 Apartment Stats, please click here.
RubinBrown’s Annual Apartment Statistical Survey
Our 2013 statistical survey has arrived! This year’s report highlights key 2012 operational and financial data from over 400 audited properties across 30 states. In summary, 2012 proved to be another prosperous year in the multifamily housing industry.
Please click here to read the Apartment Stats.
RubinBrown’s Client Portal is Here!
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 We are excited to announce the launch of RubinBrown’s client portal. The new portal will provide a convenient and secure method for RubinBrown and clients to share files without sending them through email.
SEC Financial Reporting Manual Updated
The staff in the Division of Corporation Finance of the SEC recently released an updated Financial Reporting Manual, reflecting changes through December 31, 2012.
This manual represents informal guidance prepared for use by Division of Corporation Finance staff and published to provide guidance for those filing with the SEC for certain types of transactions.
SEC Gives Thumbs-Up To Social Media
The SEC said in a "Report of Investigation" that companies may use social media sites such as Facebook and Twitter to communicate material information, as long as they tell investors in advance which outlets they intend to use and the types of information they may disclose.
SEC Holds Roundtable On Cybersecurity
The SEC held a roundtable on March 26, 2014 that focused on cybersecurity and the issues and challenges it raises for market participants and public companies, and how they are addressing those concerns.
SEC Staff Publishes Guidance on Disclosures Required By Human Rights Act
The staff in the Division of Corporation Finance (Corp Fin) of the SEC has updated its Compliance and Disclosure Interpretation (C&DI), Exchange Act Sections.
SEC Staff Publishes Small Entity Compliance Guide on Identity Theft Red Flag Rules
The staff of the SEC has published a Small Entity Compliance Guide, Identity Theft Red Flags Rules.
This guide summarizes and explains rules and guidelines jointly adopted by the SEC and CFTC that require certain regulated entities that are subject to the SEC’s or CFTC’s enforcement authority to establish programs to address risks of identity theft.
SEC Updates EDGAR Filer Manual
The SEC has published a final rule, Adoption of Updated EDGAR Filer Manual.
Senator Baucus Proposes Changes To Clean Energy Tax Incentives
Senate Finance Chairman Max Baucus presented a proposal to reform and/or eliminate certain tax breaks that promote clean energy and efficiency.
Savings from these cuts would be used to assist in financing a reduced corporate tax rate. To read the full extent of the proposal, please click here.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134 Tax Reform’s Unintended Impact on Affordable Housing Development
With pending tax reform on the horizon and the fact that all tax expenditures will likely be called into question could one of the most successful financing tools ever created to provide affordable housing and community development be in trouble?
RubinBrown's Real Estate Services Partner-In-Charge was the featured guest blogger on The Affordable Housing Tax Credit Coalition's website. Keller discusses the future of the LIHTC as well as the affect it has had on many communities.
Click here to view the blog posting.
U.S. House Passes Bill Prohibiting Mandatory Audit Firm Rotation
The House of Representatives has passed a bipartisan bill that would prohibit the Public Company Accounting Oversight Board (PCAOB) from requiring public entities to rotate audit firms on a regular basis.
Webinar Replay Now Available - How The Revisions To The Single Audit Rules Affect You
Recent changes caused by the American Recovery and Reinvestment Act may have a significant effect on your organization. These changes are applicable to both recipients and auditors of federal financial assistance programs.
Year End Reminders And Pending Expirations
BONUS DEPRECIATION The 50% bonus depreciation benefit on properties with lives of 20 years or less is set to expire at the end of 2013. No measures have yet been taken to extend the additional depreciation into future years.
9% LOW INCOME CREDIT The flat 9% low income credit is set to expire for projects not receiving an allocation of credits by January 1, 2014. Allocations received after this date revert to the floating rate.
INDIVIDUAL TAX UPDATE Several individual tax changes are in place for 2013:
Tax rate/bracket changes for taxable income over certain thresholds has increased to 39.6% as the top tax rate (over $400,000 for single filer and $450,000 for married filing jointly) Capital gains and dividend tax rates increase from 15% to 20% for taxable income over certain thresholds (over $400,000 for single filer and $450,000 for married filing jointly) Itemized deduction phaseout of 3% is revived for taxpayers with adjusted gross income over a certain threshold (over $250,000 for single filer and $300,000 for married filing jointly) Personal exemption phaseout of 2% for each $2,500 over a certain adjusted gross income threshold also returns (over $250,000 for single filer and $300,000 for married filing jointly) Medical expense deduction threshold is increased to 10% of adjusted gross income versus 7.5% in previous years for taxpayers under age 65 New Affordable Health Care Law taxes come into play, including the 0.9% additional Medicare Tax and the 3.8% surtax on net investment income
TAX ESTIMATES The due date of fourth quarter tax estimated payments for those taxpayers for calendar year ends is January 15, 2014.
Certified Public Accountants & Business Consultants www.RubinBrown.com | 1.800.678.3134