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Returning Value Blog

Private Companies: Are You on Track to Meet the 2022 Deadline for the Updated Lease Standard?

Posted by Aaron K. Waller, CPA on Aug 24, 2021

Updated accounting rules for long-term leases took effect in 2019 for public companies. Now, after several deferrals by the Financial Accounting Standards Board (FASB), private companies and private not-for-profit entities must follow suit, starting in the fiscal year 2022. The updated guidance requires these organizations to report — for the first time — the full magnitude of their long-term lease obligations on the balance sheet. Here are the details.

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Posted in Audit & Assurance

Financial Statements: Take the Time to Read the Entire Story

Posted by Melissa Motley, CPA on Aug 04, 2021

A complete set of financial statements for your business contains three reports. Each serves a different purpose but ultimately helps stakeholders — including managers, employees, investors, and lenders — evaluate a company’s performance. Here’s an overview of each report and a critical question it answers.

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Follow the Cutoff Rules for Revenue and Expenses

Posted by Melissa Motley, CPA on Jul 22, 2021

Timing counts in financial reporting. Under the accrual method of accounting, the end of the accounting period serves as a strict “cutoff” for recognizing revenue and expenses.

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Internal Control Questionnaires: How to See the Complete Picture

Posted by Aaron K. Waller, CPA on Jul 21, 2021

Businesses rely on internal controls to help ensure the accuracy and integrity of their financial statements and prevent fraud, waste, and abuse. Given their importance, internal controls are a key area of focus for internal and external auditors.

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How to Strengthen Your Internal Controls

Posted by Aaron K. Waller, CPA on Jun 04, 2021

Internal controls are a system of policies and procedures organizations put in place to protect assets and improve operating efficiency. Effective internal controls are critical to accurate financial reporting. A solid system of controls can help prevent, detect and correct financial misstatements due to errors and fraud.

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What's "Fair Value" in an Accounting Context?

Posted by Melissa Motley, CPA on May 21, 2021

In recent years, the accounting rules for certain balance sheet items have transitioned from historical cost to “fair value.” Examples of assets that may currently be reported at fair value are asset retirement obligations, derivatives, and intangible assets acquired in a business combination. Though fair value may better align your company’s financial statements with today’s market values, estimating fair value may require subjective judgment.

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What's on the FASB's 2021 Agenda?

Posted by Melissa Motley, CPA on Apr 26, 2021

In December 2020, Richard Jones stepped up as chairman of the Financial Accounting Standards Board (FASB). After meeting with stakeholders in early 2021, Jones identified a list of high-priority projects that he plans to tackle under his leadership.

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Making Sense of Your Statement of Cash Flows

Posted by Melissa Motley, CPA on Mar 25, 2021

The statement of cash flows essentially tells you about cash entering and leaving a business. It’s arguably the most misunderstood and underappreciated part of a company’s annual report. After all, a business that reports positive net income on its income statements sometimes doesn’t have enough cash in the bank to pay its bills. Reviewing the statement of cash flows can provide significant insight into a company’s financial health and long-term viability.

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Reporting Restricted Cash

Posted by Melissa Motley, CPA on Feb 22, 2021

Your company’s financial statements should be transparent about any restrictions on cash. Are your reporting practices in compliance with the current accounting guidance?

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Accounting for Property, Plant and Equipment

Posted by Melissa Motley, CPA on Jan 26, 2021

Businesses and not-for-profit entities capitalize machines, furniture, buildings, and other property, plant, and equipment (PPE) assets on their balance sheets. Here’s a refresher on some common questions about how to properly report these long-lived assets under U.S. Generally Accepted Accounting Principles (GAAP).

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Posted in Audit & Assurance

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