Insights

For many manufacturing firms, balancing inventory costs is vital to the company’s success. However, it can be a guessing game that is difficult to predict. Playing a vital role in successfully managing growth through the company’s business strategy, sustainable inventory cost management requires an effective system.

The new lease accounting standard is here for private companies. The revised lease guidance was introduced by the Financial Accounting Standards Board (FASB) in 2016 as Accounting Standards Update (ASU) 2016-02 creating Topic 842, Leases, of the Accounting Standards Codification (Topic 842 or the Lease Standard). Topic 842 is intended to “increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements.”

The Tax Cuts and Jobs Act (TCJA) permanently eliminated deductions for most business-related entertainment expenses paid or incurred after 2017. For example, taxpayers can no longer deduct any of the cost of taking clients out for a round of golf, to the theater or for a football game. Taxpayers responded to these changes by implementing changes to accounting systems and reimbursement policies to comply with new rules.  But the TCJA didn’t specifically address the meals, beverages and snacks that often accompany entertainment activities, leaving some taxpayers with questions.

In October 2021, the Financial Accounting Standards Board released Accounting Standards Update (ASU) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which clarifies how to properly account for deferred revenue in a business combination. This change was a long time coming after opposing views began to debate the proper treatment of deferred revenue after ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (also, ASC 606) went into effect.

In most tax jurisdictions, debt is viewed more favorably than equity as interest is typically deductible while dividends are not. To combat this strategy, many tax jurisdictions will impose restrictions on the deductibility of interest. The US has rules that limit business interest deductions and these restrictions are tightening in 2021.

The amount of people making money playing esports like Fortnight, League of Legends, Rocket League, Smite, Halo, CS:GO or content creating via Twitch, YouTube, Azubu, etc. continues to grow at an extraordinary pace. According to a recent article on dotesports.com, the payout for the top 50 streamers from August 2019 to October 2021 was around $1 million a year to $10 million a year.

The amount of people making money playing esports like Fortnight, League of Legends, Rocket League, Smite, Halo, CS:GO or content creating via Twitch, YouTube, Azubu, etc. continues to grow at an extraordinary pace. According to a recent article on dotesports.com, the payout for the top 50 streamers from August 2019 to October 2021 was around $1 million a year to $10 million a year.

Individuals who have retired may expect that their taxes will become simpler than they were prior to retirement, with little or no need for tax planning. While in some cases this may be true, often there are new and more complex issues that require careful consideration and consultation with advisors.

The Employee Retention Credit (ERC) has proven to be a valuable benefit for businesses affected economically by COVID-19. The credit’s complicated eligibility rules, however, may have prevented some businesses from taking advantage of the financial relief it offers. The good news is there’s still time to take advantage of the ERC and our professionals are here to help.

The Consolidated Appropriations Act, 2021 made the §179D Tax Deduction permanent. Baseline requirements for the qualification of the §179D Tax Deduction will remain ASHRAE 90.1-2007.