Archive for the ‘Accounting Methods’ Category

FASB Proposes Measuring Investment Properties at Fair Value

October 24, 2011

The Financial Accounting Standards Board on Friday proposed amendments to guidance in Topic 946 for determining whether an entity is an investment company and, in a separate exposure draft, proposed that entities that meet certain criteria be required to measure their investment properties at fair value.

The Journal of Accountancy article here provides more detail.

Final Regulations Simplify Corporate Reorganization Accounting Rules

August 2, 2011

Via the Journal of Accountancy

Final regulations issued by the Internal Revenue Service on Friday clarify and simplify the rules for continuity of accounting and inventory methods in corporate reorganizations. The regulations adopt rules proposed in 2007.

Revised Lease Accounting Proposals to be Announced

July 22, 2011

Via the Journal of Accountancy

The Financial Accounting Standards Board and the International Accounting Standards Board said Thursday they will release details soon of their revised lease accounting proposals and invite comments.

The boards have reaffirmed the major changes to lease accounting, which will require lease obligations and the related right-to-use on the balance sheet of financial statements.

The AICPA has established a page where you can learn more about the FASB-IASB Convergence Project at the Financial Reporting Center on AICPA.org.

White House Proposes Eliminating LIFO Accounting for Manufacturers

June 29, 2011

Via The Hill/On The Money Blog

The Obama administration has floated the idea of eliminating the “last in, first out” accounting method used by manufacturers to reduce their taxes.  The LIFO method allows taxpayers to sell their newest, and most likely more expensive, inventory first.

SEC Vote Reveals Likely IFRS Implementation Date

February 25, 2010

Via The Journal of Accountancy

The Securities and Exchange Commission voted unanimously on Wednesday on a new timeline for implementation of International Financial Reporting Standards for all US Public Companies.  The action calls for more study on the change from US Generally Accepted Accounting Principals, but envisions 2015 as the earliest date for implementation.

 

Following is a video of SEC Chairman Mary Schapiro’s statement regarding the vote:

IRS Issues New Guidance on Automatic Accounting Method Changes

February 9, 2010

Via the Journal of Accountancy

The IRS has released Revenue Procedure 2009-39 which provides clarification and modifications to Revenue Procedure 2008-52 and 97-27.  These IRS releases provide guidance to taxpayers on qualifications to change tax accounting methods without the advance approval of the IRS commissioner.  They provide a list of permitted methods, and the procedures for actually making the changes.

The Journal of Accountancy article linked above provides a good detailed explanation of the topic, and the Revenue Procedure can be found here.