To provide a consistent, comprehensive financial reporting model for the recognition, measurement and presentation of financial instruments, the Financial Accounting Standards Board (FASB) has issued a proposed Accounting Standards Update (ASU), Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities - Financial Instruments (Topic 825) and Derivatives and Hedging (Topic 815). If adopted as drafted, the proposed guidance will have a pervasive effect on existing accounting guidance for financial instruments. The guidance proposes changes to the number of categories and methods for measuring financial instruments; the model for testing impairment; and the qualifications for hedge accounting.
Many business owners are concerned about pending federal legislation which, if enacted, could lead to increases in tax rates on long term capital gains. Although the legislation is still being shaped in Congress, it remains likely that tax increases could take effect as early as January 1, 2011. While some business owners have already taken steps to sell their companies ahead of a possible rate increase, others are not yet ready to sell a majority interest in their companies and relinquish control.
The prolonged economic downturn in the housing market, coupled with growing concerns about rising utility costs has resulted in greater interest in smaller homes and lot sizes. There have also been some broader lifestyle changes with U.S. households eschewing upscale amenities, opting instead to invest in more low maintenance projects, particularly for property improvements. Accessibility within the home continues to be a concern, especially for an aging population, and there is an increasing demand for more flexible design and informal space within homes. Business conditions for residential architects are beginning to indicate improving conditions with the first quarterly increase in billings since mid-2007. These findings are from the American Institute of Architects (AIA) Home Design Trends Survey that focused specifically on overall home layout and use in the first quarter of 2010.
Global compliance is defined as the need to comply with all national requirements that are critical to a company’s ongoing business in foreign countries in which it has operations. This has become one of the most challenging issues facing home office financial managers in U.S.-based global companies.
If you are considering a Roth IRA conversion, additional motivation for a conversion is contained in the Health Care and Education Reconciliation Act of 2010. Under that Act, beginning in 2013 Medicare tax will be imposed on net investment income. Net investment income generally includes interest, dividends, annuities, rents, royalties, and capital gains. While IRA distributions are not considered net investment income, the requirement to take minimum required distributions from your regular IRA could increase your overall tax liability as explained below.
At the recent American Institute of Certified Public Accountants National Not-For-Profit Industry Conference, Nanette Downing, the IRS Acting Director of Exempt Organizations (EO) Examinations, stated that for the remainder of 2010 and continuing in 2011, tax-exempt organizations can expect IRS audit activity to focus on two areas – compliance with employment tax laws and charitable spending.
The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board have issued a proposed Accounting Standards Update, Revenue Recognition (Topic 605): Revenue from Contracts with Customers.
News of product deficiencies and environmental damages cover today's headlines. Recent food recalls will lead to litigation that will require lost profits and lost value measurements for parties hurt by tainted products. To resolve disputes in the event of a contract violation or the use of deficient and damaging products, parties to a claim need valuation experts to measure lost profits and lost value.
Information in this newsletter should not be construed as accounting, auditing, consulting, or legal advice on any specific facts or circumstances. The contents are intended for general information purposes only.
Under IRS Circular 230, we are required to advise you that, unless otherwise expressly indicated, any tax advice contained in this communication, including attachments, is not intended or written to be used and cannot be used, for the purpose of (1) avoiding penalties that may be imposed under Internal Revenue Code, or (2) promoting, marketing or recommending to another party any tax related matters addressed herein.
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