With the implementation of Statement No. 87 of the Governmental Accounting Standards Board (GASB 87) — Leases — on the horizon, many state colleges and universities are assessing its impact and looking to implement procedures to identify all leases and contracts to which the new lease Statement will apply. Although the new standard is not effective until reporting periods beginning after December 15, 2019, many institutions are taking a campus-wide inventory of all contracts and leases in order to evaluate whether they meet the criteria of a lease as defined in the Statement.
The Office of Management and Budget (OMB) has updated guidance for the procurement grace period available to non-Federal entities under Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
On August 23, 2018, the IRS issued proposed regulations, effective after August 27, 2018, to block attempts by New York, New Jersey and Connecticut to allow taxpayers to try to circumvent the new $10,000 federal income tax cap on state and local tax (SALT) deductions.
In this newsletter, we will summarize the position of various states with respect to the SALT deductions and the responding IRS proposed regulations.
The term “self-dealing” has been in the news more and more in recent months in connection with some high profile state attorney general investigations into various private foundations and other tax-exempt organizations. So, we hope this e-bulletin will serve as a reminder that: ”self-dealing” is any direct or indirect transaction between a private foundation and a disqualified person.
The Financial Standards Accounting Board (FASB) recently issued a proposed Accounting Standards Update (ASU or Update) (Topic 958) intended to modify the definition of the term collections. The amendment in the proposed ASU is intended to align the definition of the term collections as it appears in the Master Glossary of the FASB Accounting Standards Codification with the definition used in the American Alliance of Museums’ (AAM) Code of Ethics for Museums (the Code).
Are you looking for valuable tax write-offs? Well, for 2018, you may be in luck. There are some significant benefits that kick in as a result of the tax reform legislation signed into law last December. The Tax Cuts and Jobs Act (TCJA) provides for two important incentives for business owners, both of which require tax planning and deep understanding as to how the law is being interpreted.
As you begin your year-end audit planning process, management can proactively streamline the audit process and reduce audit-related cost over-runs. When you undertake advanced planning procedures before the audit, you can save staff time accumulating audit documentation and fielding questions; reduce disruptions to your staff’s work process; and receive timely feedback from the independent auditors regarding internal control considerations and financial statement presentation and disclosures.
No doubt you have noticed some of the interesting “lingo” associated with the cyber world whether reported in Cyber Roundup or otherwise. Below are general meanings of some of the more noteworthy terms. Always amazing to see how common English words can be morphed into such descriptive cyber terminology.
We want to make our Dealings readers aware of two significant accounting standards changes that will potentially impact most businesses in the next year or two. In this article, we are providing an overview of each of these changes; but as you can imagine, a deeper dive will be required by companies that are ultimately impacted.
For many nonprofits, the affordable housing world seems like an ideal way to create a big impact. Nonprofits can advance their missions by connecting the populations they serve to stable housing and all of the socio-economic benefits that come with that stability. At the same time, an effective affordable housing program generates income and fees that can help nonprofits defer program costs and support their bottom lines. It seems like an obvious win-win.
New Jersey legislators recently amended the Gross Income Tax Act by adding a new surtax on carried interest earned in the state. This amendment under Assembly Bill 3088 aims to reclassify hedge fund and private equity fund allocations from being entitled to preferential rates to being taxed as ordinary earned income. This could lead to significantly higher income tax for investment managers whose income meets the statutory criteria.
Potentially pervasive changes are coming to lease accounting. Under the provisions of GASB Statement No. 87, nearly every lease will be considered a capital lease. While local governments and school districts would most likely be lessees in these kinds of transactions, some might also be involved in transactions where they are the lessor of these assets.