Structuring Cloud Computing Arrangements to Ensure They Have a Positive Impact on Key Financial Indicators
Posted by Wendy Reedy on November 17, 2015
Wendy Reedy
In April 2015, the Financial Accounting Standards Board (“FASB”) issued new guidance* on accounting for fees paid for cloud computing arrangements. How you structure your cloud computing arrangement will determine if the related fees are treated as an operating expense or as a fixed or intangible asset subject to depreciation or amortization. The determination of how these fees are structured may significantly impact earnings before interest, taxes, depreciation, and amortization (“EBITDA”), and other key financial indicators, which could impact financing covenant compliance or other third party operating performance analysis. If your cloud computing arrangement fees are significant, treating them as …
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FASB Update: Simplifying Income Statement Presentation
Posted by Wendy Reedy on January 16, 2015
On January 9, 2015, the FASB issued ASU [Accounting Standards Update] 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating …
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FASB Issues Pushdown Accounting Option
Posted by Wendy Reedy on January 13, 2015
Pushdown accounting is the reflection of the fair value of assets acquired and liabilities assumed in a business acquisition to the acquired entity’s financial statements.
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VIE Consolidation Exemption and Other Accounting Updates
Posted by Wendy Reedy on February 25, 2014
Private Company Council – Generated US GAAP Updates VIE Consolidation Exemption On February 19, 2014, the Financial Accounting Standards Board (“FASB”) endorsed the Private Company …
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Cost of Living Adjustments for Retirement and Health & Welfare Benefit Plans
Posted by Wendy Reedy on December 7, 2013
The IRS has released the 2014 Cost-Of-Living Adjustments for Retirement Plans and for Health and Welfare Benefit Plans. Retirement Plans Only changes are noted in …
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Who Needs an Employee Benefit Plan Audit?
Posted by Wendy Reedy and Catherine Faysal on November 25, 2013
Many companies sponsor employee benefit plans for their employees. Management may not be aware that certain plans require an audit to be completed by an …
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Safe Harbor Plans
Posted by Wendy Reedy on October 29, 2013
Traditional 401(k) plans are subject to restrictions on the amount of contributions that can be made by or on behalf of highly compensated employees (“HCEs”), …
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Meeting Your Fiduciary Responsibilities
Posted by Wendy Reedy on February 15, 2013
The United States Department of Labor Employee Benefits Security Administration’s resource “Meeting Your Fiduciary Responsibilities” is a comprehensive source …
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The Status of the Convergence of IFRS and US GAAP Revenue Recognition
Posted by Wendy Reedy on August 15, 2012
Revenue recognition has been one of the most difficult topics for the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) to address …
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Liquidation Basis of Accounting
Posted by Wendy Reedy on August 15, 2012
Prior to the FASB recently issuing the proposed Accounting Standards Update (ASU), minimal guidance was present to apply The Liquidation Basis of Accounting. Consequently, there …
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