News
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The IRS issues guidance on the executive action deferring payroll taxes
- September 1, 2020
- Posted by: Hood & Strong
- Category: COVID-19
No CommentsOn August 28, the IRS issued guidance that provides some explanation of how employers can defer withholding and remitting an employee’s share of Social Security tax when wages are below a certain amount. The guidance in Notice 2020-65 was issued to implement President Trump’s executive action signed in early August. The guidance is brief, and
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What does the executive action deferring payroll taxes mean for employers and employees?
- August 26, 2020
- Posted by: Hood & Strong
- Category: Uncategorized
On August 8, 2020, President Trump signed an executive memorandum that defers an employee’s portion of Social Security and Medicare taxes from September 1 through December 31, 2020. At this point, the taxes are just deferred, meaning they’ll still have to be paid at a later date. However, the action directs U.S. Treasury Secretary Steven Mnuchin to
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FASB to consider goodwill amortization for public companies
- August 26, 2020
- Posted by: Hood & Strong
- Category: FASB
The Financial Accounting Standards Board (FASB) is currently researching an approach that would allow public companies to amortize goodwill. Here are the details of this ongoing project. Reporting goodwill Goodwill is an acquired intangible asset that comes on the balance sheet through a business combination. The book value of goodwill is determined by deducting from
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Hot topics for public company audit committees
- August 26, 2020
- Posted by: Hood & Strong
- Category: COVID-19
The COVID-19 crisis has dramatically altered the business world, creating new risks, uncertainties and, in some cases, opportunities. What are audit committee chairs most concerned about during these unprecedented times? Ongoing outreach project Each year, the Public Company Accounting Oversight Committee (PCAOB) actively reaches out to capital market participants to identify critical issues that audit
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Coming soon: Updated rules for reporting convertible instruments
- August 26, 2020
- Posted by: Hood & Strong
- Category: FASB
The Financial Accounting Standards Board (FASB) recently issued new guidance to simplify the accounting rules for convertible instruments and contracts in an entity’s own equity. Though narrower than initially proposed, the changes will provide investors with more-comparable information that’s easier to understand. Here are some FAQs about the changes. Why are the rules changing? A
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Reminder: Management is responsible for going-concern assessments
- July 29, 2020
- Posted by: Hood & Strong
- Category: COVID-19, FASB
Reminder: Management is responsible for going-concern assessments Going-concern issues are in the spotlight during the COVID-19 crisis. Under U.S. Generally Accepted Accounting Principles (GAAP), management, not auditors, is responsible for stating whether there’s substantial doubt about a company’s ability to continue as a going concern. Some Private Company Council (PCC) members recently asked the Financial
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No more accounting rules, please!
- July 29, 2020
- Posted by: Hood & Strong
- Category: COVID-19
Though the full effects of the COVID-19 pandemic are yet unknown, every business and not-for-profit organization is affected in some way. Executives have been working tirelessly to devise contingency plans and rework their companies’ goals and budgets to address potential risks. Some lawmakers and regulators are responding with potential relief measures. Congressional letter to SEC
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IRS: Seniors, retirees not required to take distributions from retirement accounts this year under new law
- July 27, 2020
- Posted by: Hood & Strong
- Category: COVID-19, IRS
The Internal Revenue Service today reminds seniors and retirees that they are not required to take money out of their IRAs and workplace retirement plans this year. The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, waives required minimum distributions during 2020 for IRAs and retirement plans, including beneficiaries with inherited accounts. This
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Dispelling EBITDAC rumors
- July 27, 2020
- Posted by: Hood & Strong
- Category: FASB
Stakeholders have long been concerned about financial metrics that don’t comply with U.S. Generally Accepted Accounting Principles (GAAP). But a new non-GAAP figure — earnings before interest, taxes, depreciation, amortization, and coronavirus (EBITDAC) — has resurrected the debate over whether companies should be allowed to use these unaudited metrics. Here are some of the pros
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News for Nonprofits – July 2020
- July 14, 2020
- Posted by: Hood & Strong
- Category: Nonprofits
Redirecting donations alienates donors As organizations scramble to cope with the financial fallout of the COVID-19 pandemic, they might consider, out of necessity, that donors are irked when their donations are directed to projects different from what they’d intended (This, of course, isn’t legally permissible in the case of restricted donations.) But a new study