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Employee Benefit Plan Audits
In today’s world of immediate communication, we continually hear about instances of employee fraud at school districts. How can you keep your school district’s name out of the newspaper and off the internet?
It all starts with developing an ethical culture and establishing strong internal controls to deter employees from committing fraud.
Developing a strong, ethical culture begins with setting a strong tone at the top. Management should set the proper tone through their actions, which will encourage employees to adhere to the value system that the district has defined.
The school district needs to communicate its ethical values through a written code of conduct that emphasizes the importance of integrity and ethical behavior. Administrators should disseminate the written code of conduct to all employees and could potentially go as far as to ask each employee to sign it annually.
Also, having a positive workplace environment is extremely important in establishing and maintaining an ethical workplace culture. The school district should take definitive steps to create a work environment where employees have a clear understanding of what is right and wrong, and feel free to discuss and ask questions about ethical issues and to report any violations.
Consider implementing an anonymous and confidential fraud hotline, in conjunction with a whistleblower policy at the district. A confidential service for reporting suspected fraud through email, telephone, or a website provides employees the peace of mind that they can report suspicious activity without pressure or threat.
Hiring is another key factor in developing a strong, ethical company culture. It is important for school districts to establish and maintain policies for hiring and promoting individuals with high levels of integrity, especially in positions of trust or areas where fraudulent activity is commonly found. These hiring policies might include drug screenings, integrity testing, pre-hire investigations and bonding.
New employees should be trained and informed about the school district’s values and code of conduct at the time they are hired. Once your employees are on board, the training needs to continue periodically to ingrain those ethical behaviors.
Finally, employees who commit fraud or perform unethical activities need to be swiftly terminated and prosecuted. Termination and prosecution emphasize the tone at the top and can be a powerful deterrent for wrongdoing.
As an employer, you must pay federal unemployment (FUTA) tax on amounts up to $7,000 paid to each employee as wages during the calendar year. The rate of tax imposed is 6% but can be reduced by a credit (described below). Most employers end up paying an effective FUTA tax rate of 0.6%. An employer taxed at a 6% rate would pay FUTA tax of $420 for each employee who earned at least $7,000 per year, while an employer taxed at 0.6% pays $42.
Tax credit
Unlike FICA taxes, only employers — and not employees — are liable for FUTA tax. Most employers pay both federal and a state unemployment tax. Unemployment tax rates for employers vary from state to state. The FUTA tax may be offset by a credit for contributions paid into state unemployment funds, effectively reducing (but not eliminating) the net FUTA tax rate.
However, the amount of the credit can be reduced — increasing the effective FUTA tax rate —for employers in states that borrowed funds from the federal government to pay unemployment benefits and defaulted on repaying the loan.
Some services performed by an employee aren’t considered employment for FUTA purposes. Even if an employee’s services are considered employment for FUTA purposes, some compensation received for those services — for example, most fringe benefits — aren’t subject to FUTA tax.
Recognizing the insurance principle of taxing according to “risk,’’ states have adopted laws permitting some employers to pay less. Your unemployment tax bill may be influenced by the number of former employees who’ve filed unemployment claims with the state, the current number of employees you have and the age of your business. Typically, the more claims made against a business, the higher the unemployment tax bill.
Here are four ways to help control your unemployment tax costs:
1. If your state permits it, “buy down” your unemployment tax rate. Some states allow employers to annually buy down their rate. If you’re eligible, this could save you substantial unemployment tax dollars.
2. Hire conservatively and assess candidates. Your unemployment payments are based partly on the number of employees who file unemployment claims. You don’t want to hire employees to fill a need now, only to have to lay them off if business slows. A temporary staffing agency can help you meet short-term needs without permanently adding staff, so you can avoid layoffs.
It’s often worth having job candidates undergo assessments before they’re hired to see if they’re the right match for your business and the position available. Hiring carefully can increase the likelihood that new employees will work out.
3. Train for success. Many unemployment insurance claimants are awarded benefits despite employer assertions that the employees failed to perform adequately. This may occur because the hearing officer concludes the employer didn’t provide the employee with enough training to succeed in the job.
4. Handle terminations carefully. If you must terminate an employee, consider giving him or her severance as well as outplacement benefits. Severance pay may reduce or delay the start of unemployment insurance benefits. Effective outplacement services may hasten the end of unemployment insurance benefits, because a claimant finds a new job.
If you have questions about unemployment taxes and how you can reduce them, contact us. We’d be pleased to help.
© 2019
Yeo & Yeo CPAs & Business Consultants is proud to announce that Jamie L. Rivette, CPA, CGFM, has received the Women to Watch Experienced Leader Award from the Michigan Association of Certified Public Accountants (MICPA). The MICPA awards honor individuals within the accounting profession who have exemplified excellence through dedication, leadership, and service. Rivette was nominated by her colleague, Mary Kreider, Senior Manager in Yeo & Yeo’s Saginaw office.
Rivette is a Principal based in Yeo & Yeo’s Saginaw office audit department and has been with the firm for 19 years. She leads the firm’s Government Services Group and is a Certified Government Financial Manager (CGFM). Jamie performs reviews for the Certificate of Achievement in Financial Reporting program administered by the Government Finance Officers Association. She is a board member for the Michigan Government Finance Officers Association and serves on its Accounting and Auditing Standards Committee. She is also a member of the Michigan Municipal Executives.
Ali Barnes, Managing Principal of the firm’s Alma office, works closely with Rivette as a member of the Government Services Group.
“Jamie has influenced those who have the privilege of working with her,” Barnes said. “Her commitment and diligence within not only the governmental industry but the accounting profession, as a whole, make her deserving of this award.”
Rivette leads the firm’s Career Advocacy Team, supporting Yeo & Yeo’s young accounting staff with resources and tools they need to be successful in their careers.She is an advocate for flexible work arrangements and spearheaded initiatives including a new parent checklist to help men and women at Yeo & Yeo transition into parenthood, career maps, peer-to-peer mentoring, and a career coaching program to further strengthen the future of the accounting professionals within her firm.
“It is an honor to receive this award alongside other incredible women role models in accounting,” Rivette said. “I look forward to continuing to provide support and encouragement to our future leaders as they develop in their careers.”
In the community, Rivette is treasurer of the Hemlock School Board of Education, volunteer cross country coach for Hemlock Middle School, a member of the Junior League Community Advisory Board, and is finance committee chair for Hemlock Board of Education.
Honorees will be awarded the evening of October 3, 2019, at the MICPA Awards Dinner in Novi, Michigan.
As we head toward the gift-giving season, you may be considering giving gifts of cash or securities to your loved ones. Taxpayers can transfer substantial amounts free of gift taxes to their children and others each year through the use of the annual federal gift tax exclusion. The amount is adjusted for inflation annually. For 2019, the exclusion is $15,000.
The exclusion covers gifts that you make to each person each year. Therefore, if you have three children, you can transfer a total of $45,000 to them this year (and next year) free of federal gift taxes. If the only gifts made during the year are excluded in this way, there’s no need to file a federal gift tax return. If annual gifts exceed $15,000, the exclusion covers the first $15,000 and only the excess is taxable. Further, even taxable gifts may result in no gift tax liability thanks to the unified credit (discussed below).
Note: this discussion isn’t relevant to gifts made from one spouse to the other spouse, because these gifts are gift tax-free under separate marital deduction rules.
Gifts by married taxpayers
If you’re married, gifts to individuals made during a year can be treated as split between you and your spouse, even if the cash or gift property is actually given to an individual by only one of you. By “gift-splitting,” up to $30,000 a year can be transferred to each person by a married couple, because two annual exclusions are available. For example, if you’re married with three children, you and your spouse can transfer a total of $90,000 each year to your children ($30,000 × 3). If your children are married, you can transfer $180,000 to your children and their spouses ($30,000 × 6).
If gift-splitting is involved, both spouses must consent to it. We can assist you with preparing a gift tax return (or returns) to indicate consent.
“Unified” credit for taxable gifts
Even gifts that aren’t covered by the exclusion, and that are therefore taxable, may not result in a tax liability. This is because a tax credit wipes out the federal gift tax liability on the first taxable gifts that you make in your lifetime, up to $11,400,000 (for 2019). However, to the extent you use this credit against a gift tax liability, it reduces (or eliminates) the credit available for use against the federal estate tax at your death.
Giving gifts of appreciated assets
Let’s say you own stocks and other marketable securities (outside of your retirement accounts) that have skyrocketed in value since they were acquired. A 15% or 20% tax rate generally applies to long-term capital gains. But there’s a 0% long-term capital gains rate for those in lower tax brackets. Even if your income is high, your family members in lower tax brackets may be able to benefit from the 0% long-term capital gains rate. Giving them appreciated stock instead of cash might allow you to eliminate federal tax liability on the appreciation, or at least significantly reduce it. The recipients can sell the assets at no or a low federal tax cost. Before acting, make sure the recipients won’t be subject to the “kiddie tax,” and consider any gift and generation-skipping transfer (GST) tax consequences.
Plan ahead
Annual gifts are only one way to transfer wealth to your loved ones. There may be other effective tax and estate planning tools. Contact us before year end to discuss your options.
© 2019
Many business owners ask: How can I avoid an IRS audit? The good news is that the odds against being audited are in your favor. In fiscal year 2018, the IRS audited approximately 0.6% of individuals. Businesses, large corporations and high-income individuals are more likely to be audited but, overall, audit rates are historically low.
There’s no 100% guarantee that you won’t be picked for an audit, because some tax returns are chosen randomly. However, completing your returns in a timely and accurate fashion with our firm certainly works in your favor. And it helps to know what might catch the attention of the IRS.
Audit red flags
A variety of tax-return entries may raise red flags with the IRS and may lead to an audit. Here are a few examples:
- Significant inconsistencies between previous years’ filings and your most current filing,
- Gross profit margin or expenses markedly different from those of other businesses in your industry, and
- Miscalculated or unusually high deductions.
Certain types of deductions may be questioned by the IRS because there are strict recordkeeping requirements for them • for example, auto and travel expense deductions. In addition, an owner-employee salary that’s inordinately higher or lower than those in similar companies in his or her location can catch the IRS’s eye, especially if the business is structured as a corporation.
How to respond
If you’re selected for an audit, you’ll be notified by letter. Generally, the IRS won’t make initial contact by phone. But if there’s no response to the letter, the agency may follow up with a call.
Many audits simply request that you mail in documentation to support certain deductions you’ve taken. Others may ask you to take receipts and other documents to a local IRS office. Only the harshest version, the field audit, requires meeting with one or more IRS auditors. (Note: Ignore unsolicited email message 100cs about an audit. The IRS doesn’t contact people in this manner. These are scams.)
Keep in mind that the tax agency won’t demand an immediate response to a mailed notice. You’ll be informed of the discrepancies in question and given time to prepare. You’ll need to collect and organize all relevant income and expense records. If any records are missing, you’ll have to reconstruct the information as accurately as possible based on other documentation.
If the IRS chooses you for an audit, our firm can help you:
- Understand what the IRS is disputing (it’s not always crystal clear),
- Gather the specific documents and information needed, and
- Respond to the auditor’s inquiries in the most expedient and effective manner.
Don’t panic if you’re contacted by the IRS. Many audits are routine. By taking a meticulous, proactive approach to how you track, document and file your company’s tax-related information, you’ll make an audit much less painful and even decrease the chances that one will happen in the first place.
© 2019
For the sixth consecutive year, Yeo & Yeo CPAs & Business Consultants has been selected as one of Michigan’s Best and Brightest in Wellness. The program highlights companies, schools, and organizations that promote a culture of wellness, as well as those that plan, implement and evaluate efforts in employee wellness to make their business and their community a healthier place to live and work.
“This is an exciting achievement that recognizes Yeo & Yeo’s commitment to the health and well-being of our employees,” said Thomas E. Hollerback, president and CEO of Yeo & Yeo. “We are proud to support and encourage employees looking to live a healthier lifestyle at home and in the workplace.”
Yeo & Yeo supports wellness for its employees by paying a large portion of healthcare premiums, helping to keep costs low for employees. The firm has a high percentage of participation in its wellness plan and healthcare premium reduction incentive. Another initiative is the firm’s Fitbit Fitness Program. Themed, monthly challenges for individuals and teams, along with prizes and friendly competition, have resulted in a high level of participation. Yeo & Yeo also offers an Ergonomic Standing Desk option for employees for a healthier work environment. The firm facilitates convenient onsite health screenings for healthcare participants at each of its office locations, offers onsite flu shots at no cost, and provides an Employee Assistance Program that offers confidential guidance and resources designed to support work‐life balance.
Criteria for selection included wellness programs and policies, culture and awareness, leadership, participation and incentives, communication and measurement, among others.
Yeo & Yeo will be honored at a symposium and awards celebration on October 4 at The Henry Hotel in Dearborn.
These days, most businesses need a website to remain competitive. It’s an easy decision to set one up and maintain it. But determining the proper tax treatment for the costs involved in developing a website isn’t so easy.
That’s because the IRS hasn’t released any official guidance on these costs yet. Consequently, you must apply existing guidance on other costs to the issue of website development costs.
Hardware and software
First, let’s look at the hardware you may need to operate a website. The costs involved fall under the standard rules for depreciable equipment. Specifically, once these assets are up and running, you can deduct 100% of the cost in the first year they’re placed in service (before 2023). This favorable treatment is allowed under the 100% first-year bonus depreciation break.
In later years, you can probably deduct 100% of these costs in the year the assets are placed in service under the Section 179 first-year depreciation deduction privilege. However, Sec. 179 deductions are subject to several limitations.
For tax years beginning in 2019, the maximum Sec. 179 deduction is $1.02 million, subject to a phaseout rule. Under the rule, the deduction is phased out if more than a specified amount of qualified property is placed in service during the year. The threshold amount for 2019 is $2.55 million.
There’s also a taxable income limit. Under it, your Sec. 179 deduction can’t exceed your business taxable income. In other words, Sec. 179 deductions can’t create or increase an overall tax loss. However, any Sec. 179 deduction amount that you can’t immediately deduct is carried forward and can be deducted in later years (to the extent permitted by the applicable limits).
Similar rules apply to purchased off-the-shelf software. However, software license fees are treated differently from purchased software costs for tax purposes. Payments for leased or licensed software used for your website are currently deductible as ordinary and necessary business expenses.
Software developed internally
If your website is primarily for advertising, you can also currently deduct internal website software development costs as ordinary and necessary business expenses.
An alternative position is that your software development costs represent currently deductible research and development costs under the tax code. To qualify for this treatment, the costs must be paid or incurred by December 31, 2022.
A more conservative approach would be to capitalize the costs of internally developed software. Then you would depreciate them over 36 months.
Third party payments
Some companies hire third parties to set up and run their websites. In general, payments to third parties are currently deductible as ordinary and necessary business expenses.
Before business begins
Start-up expenses can include website development costs. Up to $5,000 of otherwise deductible expenses that are incurred before your business commences can generally be deducted in the year business commences. However, if your start-up expenses exceed $50,000, the $5,000 current deduction limit starts to be chipped away. Above this amount, you must capitalize some, or all, of your start-up expenses and amortize them over 60 months, starting with the month that business commences.
We can help
We can determine the appropriate treatment for these costs for federal income tax purposes. Contact us if you have questions or want more information.
© 2019
You may have Series EE savings bonds that were bought many years ago. Perhaps you store them in a file cabinet or safe deposit box and rarely think about them. You may wonder how the interest you earn on EE bonds is taxed. And if they reach final maturity, you may need to take action to ensure there’s no loss of interest or unanticipated tax consequences.
Interest deferral
Series EE Bonds dated May 2005 and after earn a fixed rate of interest. Bonds purchased between May 1997 and April 30, 2005, earn a variable market-based rate of return.
Paper Series EE bonds were sold at half their face value. For example, if you own a $50 bond, you paid $25 for it. The bond isn’t worth its face value until it has matured. (The U.S. Treasury Department no longer issues EE bonds in paper form.) Electronic Series EE Bonds are sold at face value and are worth their full value when available for redemption.
The minimum term of ownership is one year, but a penalty is imposed if the bond is redeemed in the first five years. The bonds earn interest for 30 years.
How they’re taxed
Series EE bonds don’t pay interest currently. Instead, the accrued interest is reflected in the redemption value of the bond. The U.S. Treasury issues tables showing the redemption values.
The interest on EE bonds isn’t taxed as it accrues unless the owner elects to have it taxed annually. If an election is made, all previously accrued but untaxed interest is also reported in the election year. In most cases, this election isn’t made so bond holders receive the benefits of tax deferral.
If the election to report the interest annually is made, it will apply to all bonds and for all future years. That is, the election cannot be made on a bond-by-bond or year-by-year basis. However, there’s a procedure under which the election can be canceled.
If the election isn’t made, all of the accrued interest is finally taxed when the bond is redeemed or otherwise disposed of (unless it was exchanged for a Series HH bond). The bond continues to accrue interest even after reaching its face value, but at “final maturity” (after 30 years) interest stops accruing and must be reported.
Note: Interest on EE bonds isn’t subject to state income tax. And using the money for higher education may keep you from paying federal income tax on your interest.
Deferral won’t last forever
One of the principal reasons for buying EE bonds is the fact that interest can build up without having to currently report or pay tax on it. Unfortunately, the law doesn’t allow for this tax-free buildup to continue indefinitely. When the bonds reach final maturity, they stop earning interest.
Series EE bonds issued in January 1989 reached final maturity after 30 years, in January 2019. That means that not only have they stopped earning interest, but all of the accrued and as yet untaxed interest is taxable in 2019.
If you own EE bonds (paper or electronic), check the issue dates on your bonds. If they’re no longer earning interest, you probably want to redeem them and put the money into something more lucrative. Contact us if you have any questions about the taxability of savings bonds, including Series HH and Series I bonds.
© 2019
Many municipalities are subject to a single audit. Is your municipality also subject to group auditing standards? Perhaps that is your exact situation. There are circumstances when your primary government expends much less than $750,000 (the minimum threshold that triggers a single audit) in federal awards, but some of the components of the group also have federal awards. Is the aggregate of all federal awards expended more than $750,000? You may or may not be required to undertake a single audit.
Summary
- Single audits are required when federal expenditures exceed $750,000.
- In the case of group audits, the $750,000 applies to all expenditures of the components of the group.
- If the components of the group have separately issued financial statements (and if applicable, single audits), the primary government does not need to include the expenditures of federal awards of the other components in their schedule of expenditures of federal awards. This situation could, under certain circumstances, eliminate the need for a single audit even if the aggregate expenditures of federal awards are more than $750,000.
Uniform Guidance was effective December 26, 2014, and at that point the threshold of federal expenditures that required entities to undergo a single audit was increased from $500,000 to $750,000. Typically, municipalities apply the $750,000 threshold to expenditures that are directly made by the government or awarded to sub-recipients. When these expenditures exceed $750,000, it is clear that the municipality needs a single audit.
What if the primary government is also a component of a group audit, with several other components that also expend federal awards? When the total of the group exceeds $750,000, a single audit is typically required. In this instance, it can be tricky to gather the necessary information that auditors will request when the federal award programs are spread among various components of the group.
There is a way out of the single audit madness! If each component has its own financial statement audit (and potentially single audit), then the primary government is not required to include the expenditures of federal awards in the primary government’s schedule of expenditures of federal awards. In the case of a primary government with relatively low expenditures of federal awards and components that also have federal expenditures, this could eliminate the need for the primary government to undergo a single audit. The authority to do this is directly from Uniform Guidance – 2 CFR 200.514(a), which reads as follows:
§ 200.514 Scope of audit.
(a)General. The audit must be conducted in accordance with GAGAS. The audit must cover the entire operations of the auditee, or, at the option of the auditee, such audit must include a series of audits that cover departments, agencies, and other organizational units that expended or otherwise administered federal awards during such audit period, provided that each such audit must encompass the financial statements and schedule of expenditures of federal awards for each such department, agency, and other organizational unit, which must be considered to be a non-federal entity. The financial statements and schedule of expenditures of federal awards must be for the same audit period.
The important distinction here is the option to undergo a series of audits. Of course, there are pros and cons to performing a series of audits:
Pros
- No single audit.
- Gathering information can be difficult when the components are widespread.
Cons
- Each component needs a separate financial statement audit (and potentially a single audit).
- The cost to obtain separate audits may be prohibitive.
All of this leads to one question – Is it worth it for your municipality to initiate a series of audits rather than have a single audit performed? That answer will vary by municipality, but at least you know you have the option. It is important to consider all of the factors when making this determination.
A final consideration is to determine what each source of revenue may require. Look through your grant agreements to make sure that those requirements are all still being met before making your final decision.
Manufacturing company owners and managers generally focus their attention on what’s happening — or isn’t happening — on the plant floor. Activities in overhead departments, such as human resources (HR), can become a secondary consideration. If this sounds like your company, consider this: Manufacturing is a labor-intensive industry, and you can’t afford to ignore HR.
A well-oiled HR department enables your business to run on all cylinders and overcome many challenges. Conversely, HR problems can slow down your company’s growth. If, for example, HR doesn’t proactively search for new machine operators, you may not be able to fill a big order that comes in unexpectedly.
7 Critical Functions
Here are seven ways HR departments can support a manufacturing company’s operational and performance objectives:
1. Recruitment. This may be HR’s most important function. Finding the best talent to keep the plant humming without breaking the bank is always an issue, but it’s even more so in the current tight labor market. Today’s unemployment rate has reached record lows in some markets, and many applicants lack the skills and training to operate complex machines and computers that are used by advanced manufacturers.
One challenges for HR is that Millennials have shown less interest in manufacturing than previous generations. This may be due to a widely held misconception that manufacturing isn’t “cutting-edge.” Some younger workers may also believe that manufacturing jobs aren’t secure due to a reliance on temps to handle seasonal or periodic work.
The numbers bear this out. According the National Association of Manufacturers (NAM), in the first quarter of 2019 more than 25% of manufacturers had to turn down new business opportunities for lack of skilled employees. By 2025, millions of manufacturing jobs are expected to go unfilled. Your HR department must constantly strategize and think creatively to ensure that this doesn’t happen to your company.
2. Compensation. For many manufacturers, compensation is the second largest business expense next to raw materials. Of course, wages alone aren’t enough to attract the top talent. Today, jobseekers look for a complete package that includes a good salary, benefits and perks, such as bonuses, paid time off and retirement plans.
Your HR team needs to know enough about the labor market to offer the best combination of these elements. At the same time, HR must align salary and incentive programs with your company’s performance markers — all while working within a tight budget. It’s a tough balancing act.
3. healthcare benefits. No question, the biggest-ticket under the benefits umbrella is health insurance. As healthcare costs rise, premiums will also continue to soar.
HR managers must balance the needs of employees against the cost to your company.Increasingly, this means asking workers to pay a larger percentage of premiums and accept high deductibles. But your company can’t put too much of the burden on employees or it risks losing them. HR must understand the health insurance marketplace and know how to find the best “deals” without sacrificing quality or violating laws governing employer-sponsored health insurance. This may require them to outsource some work to benefits professionals.
4. Training. Manufacturers hoping to rely on “interchangeable” workers probably won’t last long in the global marketplace. You need workers with specialized skills — and that means devoting resources to training.
Extra training isn’t only about the right hands operating critical machines. When workers are well-trained, they tend to care more about the quality of work, leading to higher productivity. Accordingly, HR should use every tool at its disposal, including mentoring, coaching, internships, career development plans, tuition reimbursements and motivational speakers.
5. Performance management. Skilled performance management promotes employee success and, if HR is successful, results in better financial performance. Many HR managers design and implement internal employee appraisal programs. But input from performance management consultants can be valuable as new “best practices” emerge.
6. Labor relations. In most U.S. states, manufacturers can’t ignore unions. Managing union relations may fall to your HR department. It’s important that this team maintains a positive and productive relationship with unions and union members. Of course, if conflict arises, upper management must step in.
7. Compliance. Whether they want to be or not, HR managers must be labor law professionals. Your HR manager may be responsible for drawing up policies that protect workers and keeping corporate officers abreast of changing regulations. There’s little room for error because failure to comply with labor laws can lead to Litigation Support and financial penalties.
Protect Your Assets
Your company’s HR department to integral to its success. Yeo & Yeo offers customizable HR solutions to support recruiting, training, reviewing, policies and procedures and compensating employees. Contact us to discuss how we can help you with your most valuable asset – your workforce.
As you are probably now aware, the new lease accounting standard has been delayed. In July, the Financial Accounting Standards Board (FASB) voted to propose delaying implementation of the new lease accounting standard for non-public companies (which include private companies and nonprofit organizations) for one year. Based on this proposal, the new standard would become effective for non-public companies in January 2021 and would be reported in December 31, 2021, financial statements.
FASB’s proposal is available for public comment through September 16, 2019, at which point FASB will finalize the new effective date.
The delay reflects a mindset shift by FASB and is the result of the board gaining a greater understanding of the challenges nonpublic companies and nonprofits encounter when adopting major accounting updates. Under this philosophy change, FASB intends to extend and simplify how effective dates are staggered between large public companies and all other entities (which include private companies, and nonprofit organizations).
Yeo & Yeo will continue to provide updates on the proposed change in the accounting standard. If you have questions, please contact your local Yeo & Yeo office.