In recent years, accounting rules have changed, and certain balance sheet items—such as asset retirement obligations, derivatives, and intangible assets acquired in a business combination—must now be reported at “fair value” rather than historical cost. Reporting at fair value brings your company’s financial statements into better alignment with today’s market values, but estimating fair value […]

The business energy credit, a valuable federal income tax benefit, is intended primarily for businesses that use alternative energy (other energy tax breaks may apply for the use of alternative energy in the home or production of energy for sale). This tax benefit applies to the acquisition of several types of alternative energy property and […]

If your company plans to buy or merge with another business, you’re probably focusing your attention on negotiating deal terms and conducting due diligence. However, you’ll also want to address the transaction’s post-closing financial reporting requirements—otherwise, you may face disappointing financial results, potential lawsuits, and restatements in the future. The following guidance will help you […]

Many employees have chosen to postpone using their allotted paid time off until pandemic-related safety concerns subside and COVID-19 restrictions are lifted. As a result, certain employers have seen an increase in accruals. The following guidance can help you evaluate if your company is required to report a liability for “compensated absences”—and how to estimate […]

Estate planning isn’t only concerned with what happens after you die—it’s also important to plan for how critical financial or medical decisions will be made if you can’t make them for yourself. With carefully designed powers of attorney for finances and health care, you can designate a trusted person to make medical and financial decisions […]

To help employees improve their skills and gain additional knowledge, many businesses provide education fringe benefits. Employees can receive up to $5,250 from their employer for educational assistance each year on a tax-free basis under a “qualified educational assistance program”. For these purposes, “education” is defined as any form of instruction or training that develops […]

As many incorporated business owners know, corporations can deduct salaries and bonuses paid to executives, but not dividend payments. Because of this, funds paid as dividends are taxed twice, both to the corporation and to the recipient, while money paid out as compensation is only taxed to the employee receiving the compensation. As such, it’s […]

Richard Jones became the new chairman of the Financial Accounting Standards Board (FASB) in December 2020. In early 2021, after meeting with stakeholders, Jones identified a list of projects he intends to prioritize as chairman. The basics The U.S. Generally Accepted Accounting Principles (GAAP) are the set of rules used by many domestic businesses to […]

Fewer estates are now subject to the federal tax, as the federal gift and estate tax exemption has reached an inflation-adjusted $11.7 million for 2021. President Biden has proposed reducing the exemption to $3.5 million, but it’s unclear whether or not the proposal will pass Congress. In the event that no bill is passed, the […]