By Jeffrey A. Ford, Grossman Yanak & Ford LLP
Global market participants are transitioning from using or referencing the LIBOR and similar interbank offered rates to alternative reference rates. In response, in the United States, the FASB issued ASUs 2020-04 and 2021-01 to provide optional expedients and exceptions for affected contract modifications, hedge accounting, and held-to-maturity (HTM) debt securities. A high-level summary of the optional expedients follows.
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By Katherine Rose, Citroen Wells Chartered Accountants
In the United Kingdom, the Coronavirus Job Retention Scheme (CJRS) and the Statutory Sick Pay Rebate Scheme (SSP) resulted in cash payments from the government to compensate employers for part of the wage costs of employees placed on furlough or sick leave, respectively, due to Covid-19.
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By Sameer Kamboj, SKC World
A large portion of our lives is invested in activities that we feel will lead to increased success. Of course, our ideas of success are different. All our pursuits follow the trajectory of these ideas of success.
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By Giorgi Kutchashvili, TMC LLC
Wondering how developing countries succeed? Then this article is for you. In 2014, Georgia signed an Association Agreement with the European Union, under which it undertook to gradually bring the accounting and auditing sector closer to EU norms and standards. As a result, in 2016, Georgia passed a new law according the enterprises accounting, reports preparation/ publication and auditing. The basic idea of the law is that the financial statements of enterprises should be transparent and public.
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By Alan Rajah, Lawrence Grant
In the world of finance and accounting, maintaining the status quo is no longer enough to remain competitive. Today's market requires companies to engage in continuous improvement so that they are always serving clients in faster and more accessible ways. As financial and accounting services look to attract, engage, and retain customers, there's only one solution for climbing the ranks. The digital automation movement is sweeping the field and pushing the limits of what is possible. Companies that embrace automation will find increased profits and productivity. Digital transformation moves manual, repetitive tasks off their employees' checklists and into the metaphorical hands of artificial intelligence.
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By Andreas Gottmann, FACT GmbH
As in most other countries, both German commercial law and German tax law differentiate between goodwill acquired for a consideration and internally generated goodwill. Only goodwill acquired against payment may be capitalised. Under German commercial law, goodwill acquired for a consideration is recognised as an asset with a limited service life and regularly amortised over five years. Longer periods are also conceivable, provided that this is economically credible. If a longer service life is assumed, this must be justified in the notes to the financial statements as part of the annual financial statements. Extraordinary depreciation must be carried out if there is a permanent reduction in value.
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By Imke Reich, nbs partners
“I can’t think of anything that isn’t cloud computing (…).” Larry Ellison, Chairman, Oracle
Software as a Service (SaaS), the largest market segment of cloud computing, is typically characterised as a service, where the provider grants the user the right to continuously access a software in a cloud infrastructure managed and controlled by the provider for a certain period. Accounting for SaaS arrangements at the level of the user is not clearly specified under IFRS.
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By Jeffrey A. Ford, Grossman Yanak & Ford LLP
Private companies and their investors, particularly private equity funds, experienced much frustration with purchase accounting standards until relief arrived in 2014.
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By Tobias Schreiber, nbs partners
Adding value to a company is one of the most important strategic achievements from a shareholder or management perspective. An effective employee incentive programme sends employees a clear message that management understands what truly motivates them to do their best work and is willing to provide it.
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By Tom Parry, Navolio & Tallman LLP
Are your clients ready for the new US revenue recognition standards? FASB Update 2015-14 – Revenue from Contracts with Customers (Topic 606) is effective for non-public entities, including not-for-profit entities, for annual reporting periods beginning after 15 December 2018. The new guidance affects any reporting organisation that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts).
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