CPAs Calculating the Latest in Audit + Accounting News

Franchisor revenue recognition relief

Recently, the FASB issued an update to U.S. accounting standards that will be some relief to franchisors by providing an avenue for earlier revenue recognition for initial franchise fees. Many franchisors found it difficulty to support the identification of distinct performance obligations within a franchise agreement under the new revenue recognition standard guidance (Topic 606). …

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What is impairment?

As a result of the COVID-19 pandemic, many private companies will be tasked with reviewing certain assets for potential impairment during the year. While companies are required to assess if any impairment of assets had occurred during the year, prior to 2020, this was often done rather casually. However, the impact of COVID-19 on most …

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COVID-19 and continuing as a going concern

Under U.S. GAAP, an entity is presumed to be a going concern until the entity’s liquidation becomes impending. But what exactly does that mean? Going concern signifies that the company is financially stable enough to meet its current obligations and can continue operations for the foreseeable future. Don’t miss: COVID-19 leads to slow moving and …

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COVID-19 leads to slow moving and obsolete inventory

Millions of retailers and manufacturers across the nation have dealt with pandemic shutdowns and capacity restrictions that have not only negatively impacted their bottom line, but also led to an increase in the levels of inventory on hand. Depending on the type of inventory, the aged inventory will likely require special attention and analysis to …

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How do you record one time transactions?

Have you ever had a unique, one-time transaction and wondered how it should be accounted for in your financial statements? Previously, U.S. GAAP included the concept of extraordinary items. However, this was eliminated as the FASB wanted to reduce the cost and complexity of preparing financial statements. With this elimination, the FASB kept a requirement …

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Changes to auditor’s reports are coming

If you have audited financial statements, you should be aware that the accompanying auditor’s report is soon going to have a new look under a new audit standard. This new standard will significantly change the form and content of the auditor’s report. Some of the main changes include revisions to the layout of the report, …

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5 essential KPI’s for startups

Over the years I have been very fortunate to work with some of the most successful startups throughout Arizona and the Southwest. Starting a business is challenging for many reasons but maintaining focus on the true opportunities in an environment of perpetual change can be particularly difficult. Establishing meaningful key performance indicators (“KPI’s”) is something …

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Issuing options and warrants to your customers?

Everyone knows issuing stock options and warrants is a great way to compensate employees and contractors for a job well done. These methods of compensation have been embraced by the startup community as a way to reward others without using up their much-needed cash. Issuing options and warrants to customers is a less common practice …

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Tips for being prepared for your year end audit

It is no secret when it comes time for your annual audit, there is a lot to get done in a short amount of time. We are well aware of how stressful and time consuming this can be – which is why we want to provide you with some tips and advice so the process …

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Audits are not always fun, but do provide many benefits

The added responsibility of managing an audit on top of your day-to-day responsibilities can feel like an inconvenience. But it helps to keep in mind the benefits of having an audit that truly outweighs the inconveniences: Provides a reasonable level of assurance (not 100%) Provides more credibility for selling a business or applying for funding …

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