Top 5 Accounting and Tax Stories of 2019

We may not have had any landmark legislative updates this year, but the accounting and tax world kept plenty busy working through previous tax reform and other major accounting updates. Global political dynamics, regulatory updates, and accounting developments dominated the scene. Below is a snapshot of some of the year’s biggest stories, as noted by the readers of our publications.

Accounting for Tariffs

The impact of tariffs on trade and business are one consideration; their impact on your accounting department is another. Our article took a closer look at how tariffs affect accounting for inventory, revenue recognition, and impairment. Being aware of some of the nuances to accounting can help businesses (and their investors) prepare for the potential ramifications that could affect their 2019 financial reporting. Read More >>

Tax Reform Affects Tax Season

To no one’s surprise, the tax changes under the law commonly known as the Tax Cuts and Jobs Act (TCJA) presented significant challenges for tax compliance. A record number of taxpayers requested extensions of time to file their 2018 tax returns during the 2019 filing season. Additionally, the IRS changed reporting requirements for several 2018 returns, including forms for partnerships. Readers were particularly interested in the changes to the 2018 Schedule K-1, and even more changes are on the way to the Schedule K-1. The draft forms for the 2019 partnership return and the associated Schedule K-1 indicate that the reporting burdens will continue into the New Year. Read More>>

What to Expect from the ERISA Audit Changes

The AICPA’s Auditing Standards Board released new auditing standards for plans subject to the Employee Retirement Income Security Act of 1974 (ERISA). Changes will generally affect the employee benefit plan audits being performed in 2021, and they come with new implications for plan sponsors and their management teams. Our article details how the ERISA audit changes will affect future plan audits and what teams can do to be prepared for when those changes take effect. Read More>>

Lease Accounting Gets Delayed

Public companies adopted the new standard for lease accounting under ASC Topic 842 in the 2019 calendar year. The challenges they encountered, including the scarcity of software solutions to help with tracking leases under the standard, led the Financial Accounting Standards Board (FASB) to delay the effective date of the lease accounting changes for private companies, smaller reporting public companies, and not-for-profit organizations until the 2021 calendar year. The FASB officially released the accounting standards update with the leasing standard delay in November 2019. Read More>>

Taking a Closer Look at the Qualified Small Business Stock Exclusion

Ramifications from the tax reform law will continue to be felt for years to come. One consequence from the updates may be a renewed interest in the benefits under Internal Revenue Code Section 1202, or what is commonly known as the Qualified Small Business Stock Exclusion. Changes to Section 1202 may make the Qualified Small Business Stock Exclusion more appealing for small businesses, particularly those with private equity investors, but the provision comes with some stringent requirements. Our article breaks down the criteria for qualification under Section 1202, the benefits of the exclusion for investors, and some of the recent changes to the provision. Read More>>

Why Change Auditors

Published on December 19, 2019