CBIZ & MHM Executive Education Series™
2014 First Quarter Accounting Update
Presented by: James Comito, Mike Loritz, Mark ...
2#CBIZMHMwebinar#CBIZMHMwebinar
 To view this webinar in full screen mode, click on view
options in the upper right hand ...
3#CBIZMHMwebinar#CBIZMHMwebinar
 This webinar is eligible
for CPE credit. To receive
credit, you will need to
answer peri...
4#CBIZMHMwebinar#CBIZMHMwebinar
The information in this Executive Education Series
course is a brief summary and may not i...
5#CBIZMHMwebinar
Today’s Presenters
James Comito, CPA
Shareholder, MHM
858.795.2029 | jcomito@cbiz.com
A member of MHM’s P...
6#CBIZMHMwebinar
Today’s Presenters
Mark Winiarski, CPA
Senior Manager, CBIZ MHM
913.234.1656 | mwiniarski@cbiz.com
Mark h...
7#CBIZMHMwebinar#CBIZMHMwebinar
Today’s Agenda
1
2
FASB Update
PCAOB Update
3 Federal Tax Update
FASB UPDATE
9#CBIZMHMwebinar#CBIZMHMwebinar
Accounting for Goodwill
 The accounting alternative permitting goodwill amortization
was ...
10#CBIZMHMwebinar#CBIZMHMwebinar
 CraftSetters, Inc is a maker of custom eyewear and
lenses.
 CraftSetters receives orde...
11#CBIZMHMwebinar#CBIZMHMwebinar
 When performing the acquisition method of accounting
CraftSetters recognized $10 millio...
12#CBIZMHMwebinar#CBIZMHMwebinar
 Beginning in December 2010 the management of
CraftSetters performed an annual impairmen...
13#CBIZMHMwebinar#CBIZMHMwebinar
 Management of CraftSetters has decided to adopt the
amortization method for goodwill fo...
14#CBIZMHMwebinar#CBIZMHMwebinar
 Definition of a public business entity as provided by
ASU 2013-12:
 Is CraftSetters re...
15#CBIZMHMwebinar#CBIZMHMwebinar
 Definition of a public business entity as provided by
ASU 2013-12 (continued):
 CraftS...
16#CBIZMHMwebinar#CBIZMHMwebinar
 Step 2: Identify all existing goodwill at date of
adoption:
 $10 million of goodwill r...
17#CBIZMHMwebinar#CBIZMHMwebinar
 Step 3: Assign useful life to existing goodwill
 Should the estimated useful life be l...
18#CBIZMHMwebinar#CBIZMHMwebinar
 Step 5: Determine amortization for the year of adoption
 Did a triggering event occur?...
19#CBIZMHMwebinar#CBIZMHMwebinar
Simplified Hedge Accounting
 The accounting alternative permitting the simplified
hedge ...
20#CBIZMHMwebinar#CBIZMHMwebinar
Simplified Hedge Accounting
 Only applies to qualifying receive-variable, pay-fixed inte...
21#CBIZMHMwebinar#CBIZMHMwebinar
 The PCC removed its project on the combined
instruments approach for hedge accounting.
...
22#CBIZMHMwebinar#CBIZMHMwebinar
 A qualifying private company may elect to not apply the
VIE model to leasing entities w...
23#CBIZMHMwebinar#CBIZMHMwebinar
 Investments – equity method and joint ventures:
accounting for investments in qualified...
24#CBIZMHMwebinar#CBIZMHMwebinar
 Accounting for share-based payments when the terms
of an award provide that a performan...
25#CBIZMHMwebinar#CBIZMHMwebinar
FASB voted to remove development stage entities
 Development stage entities:
 Devote su...
26#CBIZMHMwebinar#CBIZMHMwebinar
 Conceptual framework for financial reporting; Chapter 8,
notes to the financial stateme...
27#CBIZMHMwebinar#CBIZMHMwebinar
 Increase the usefulness of information about insurance
contracts
 FASB recently decide...
28#CBIZMHMwebinar#CBIZMHMwebinar
Classification
 Measurement of equity instruments at fair value recognized
through net i...
29#CBIZMHMwebinar#CBIZMHMwebinar
 Revenue recognition
 Final standard likely in Q2 2014
 Leasing
 IASB and FASB meetin...
PCAOB UPDATE
31#CBIZMHMwebinar#CBIZMHMwebinar
PCAOB & SEC Issued:
 Attestation Standard No. 1: Examination engagements regarding
compl...
32#CBIZMHMwebinar#CBIZMHMwebinar
Transparency Project
 Proposal to require disclosure of the following:
 The name of the...
33#CBIZMHMwebinar#CBIZMHMwebinar
Other Developments
 The SEC has removed the project on auditor rotation
from its agenda....
FEDERAL TAX UPDATE
35#CBIZMHMwebinar
 “Tax extenders” refer to legislation to extend the
package of expiring tax provisions that typically g...
36#CBIZMHMwebinar
“Tax Extenders” - Expired Business Provisions
 Business tax provisions that expired 12/31/13 include:
...
37#CBIZMHMwebinar
 On 2/26, Chairman of House Ways and Means
Committee Dave Camp (R-Mich.) released discussion
draft of a...
38#CBIZMHMwebinar
Camp Proposal – Notable Business Reforms
 Top corporate tax rate of 25% (down from 35%)
 Sec. 179 expe...
39#CBIZMHMwebinar
Camp Proposal – Business Reforms, cont’d.
 Repealed provisions would include (not all inclusive):
 Acc...
40#CBIZMHMwebinar
Camp Proposal – Notable International Reforms
 Subpart F replaced with 95% exemption on foreign
dividen...
41#CBIZMHMwebinar
Obama Fiscal Year 2015 Budget Proposals
 President Obama released his annual list of budget
proposals o...
42#CBIZMHMwebinar
Obama Budget – Notable Business Provisions
 Extenders:
 Permanently extend R&E credit
 Permanently ex...
43#CBIZMHMwebinar
Obama Budget – Business Provisions, cont’d.
 New provisions:
 Limit capital gain deferral on like-kind...
44#CBIZMHMwebinar
Affordable Care Act Update
 Employer shared responsibility payment:
 Nondeductible excise tax on large...
45#CBIZMHMwebinar
Tangible Property Regulations Update
 Timeline:
 September 13, 2013 – Treasury issued:
 Final regulat...
46#CBIZMHMwebinar
Rev Proc 2014-16 – Capitalization Rules
 Common automatic accounting method changes:
 Deducting as rep...
47#CBIZMHMwebinar
Rev Proc 2014-17 – Disposition Rules
 Partial dispositions of tangible property
 Previously an account...
48#CBIZMHMwebinar
Eye on Washington: Quarterly Business Tax
Update
For more information on tax
developments that may impac...
49#CBIZMHMwebinar#CBIZMHMwebinar
Questions?
50#CBIZMHMwebinar#CBIZMHMwebinar
 Join us for these courses:
 Repeat broadcast on April 10
 Second Quarter Update on Ju...
51#CBIZMHMwebinar#CBIZMHMwebinar
Connect with Us
linkedin.com/company/
mayer-hoffman-mccann-p.c.
@mhm_pc
youtube.com/
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Webinar Slides: 2014 First Quarter Accounting and Financial Reporting Update

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Join us for this quarterly webinar series designed to bring you up to date on hot topics, technical matters and current events impacting financial reporting and the accounting profession.

Our professionals will discuss happenings at the Financial Accounting Standards Board, American Institute of Certified Public Accountants, Securities and Exchange Commission, Public Company Accounting Oversight Board and other relevant governance bodies.We will also briefly touch on recent tax changes and proposed legislation.

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Webinar Slides: 2014 First Quarter Accounting and Financial Reporting Update

  1. 1. CBIZ & MHM Executive Education Series™ 2014 First Quarter Accounting Update Presented by: James Comito, Mike Loritz, Mark Winiarski and William Smith March 20, 2014
  2. 2. 2#CBIZMHMwebinar#CBIZMHMwebinar  To view this webinar in full screen mode, click on view options in the upper right hand corner.  Click the Support tab for technical assistance.  If you have a question during the presentation, please use the Q&A feature at the bottom of your screen. Before We Get Started…
  3. 3. 3#CBIZMHMwebinar#CBIZMHMwebinar  This webinar is eligible for CPE credit. To receive credit, you will need to answer periodic participation markers throughout the webinar.  External participants will receive their CPE certificate via email immediately following the webinar. CPE Credit
  4. 4. 4#CBIZMHMwebinar#CBIZMHMwebinar The information in this Executive Education Series course is a brief summary and may not include all the details relevant to your situation. Please contact your service provider to further discuss the impact on your business. Disclaimer
  5. 5. 5#CBIZMHMwebinar Today’s Presenters James Comito, CPA Shareholder, MHM 858.795.2029 | jcomito@cbiz.com A member of MHM’s Professional Standards Group, James has expertise in all aspects of revenue recognition, business combinations, impairment of goodwill and other intangible assets, accounting for stock-based compensation, accounting for equity and debt instruments and other accounting issues. Additionally, he has significant experience with a variety of other regulatory and corporate governance issues pertaining to publicly traded companies, including all aspects of internal control. In addition, James frequently speaks on accounting and auditing matters at various events for MHM. Mike Loritz, CPA Shareholder, MHM 913.234.1226 | mloritz@cbiz.com Mike has 18 years of experience in public accounting with diversified financial companies and other service based companies, including banking, broker/dealer, investment companies, and other diversified companies ranging from audits of public entities in the Fortune 100 to small private entities. He is a member of MHM's Professional Standards Group, providing accounting knowledge leadership in the areas of derivative financial instruments, investment securities, share-based compensation, fair value, revenue recognition and others.
  6. 6. 6#CBIZMHMwebinar Today’s Presenters Mark Winiarski, CPA Senior Manager, CBIZ MHM 913.234.1656 | mwiniarski@cbiz.com Mark has 12 years of experience in an audit and advisory function and is located in our Kansas City office. In addition to serving his clients which are primarily in the manufacturing, retail and distribution industries, Mark supports our Professional Standards Group by consulting with clients and engagement teams across the country on accounting and auditing issues in areas including revenue recognition, consolidations and business combinations. William M. Smith, Esq. Managing Director, CBIZ National Tax Office 301.951.3636 | billsmith@cbiz.com Bill Smith is a managing director in the CBIZ National Tax Office. Bill monitors federal tax legislation and consults nationally on a broad range of foreign and domestic tax services for businesses and individuals, including mergers and acquisitions, domestic and international investments or divestitures, and the review, negotiation and drafting of tax aspects of business agreements.
  7. 7. 7#CBIZMHMwebinar#CBIZMHMwebinar Today’s Agenda 1 2 FASB Update PCAOB Update 3 Federal Tax Update
  8. 8. FASB UPDATE
  9. 9. 9#CBIZMHMwebinar#CBIZMHMwebinar Accounting for Goodwill  The accounting alternative permitting goodwill amortization was finalized on January 16. (ASU 2014-02)  Qualifying private companies (not defined as public entities) can adopt this standard for financial statements that have not been made available for issuance.  Permits amortization of goodwill for up to a 10-year period  Eliminates the annual impairment test model in favor of a triggering event model Private Company Council Activities
  10. 10. 10#CBIZMHMwebinar#CBIZMHMwebinar  CraftSetters, Inc is a maker of custom eyewear and lenses.  CraftSetters receives orders from optometrists and their customers for frames and lens and manufactures them in their facility.  On December 31, 2009 CraftSetters acquired Eye Repair Shop, LLC, an owner of a chain of eye glass repair stores and optometrists. Goodwill Amortization Election - Example
  11. 11. 11#CBIZMHMwebinar#CBIZMHMwebinar  When performing the acquisition method of accounting CraftSetters recognized $10 million of goodwill.  CraftSetters determined that Eye Repair Store was a reporting unit because:  It has business activities which earn revenues and causes expenses to be incurred  It has discrete financial information  The CEO reviews performance weekly to allocate resources Goodwill Amortization Election - Example
  12. 12. 12#CBIZMHMwebinar#CBIZMHMwebinar  Beginning in December 2010 the management of CraftSetters performed an annual impairment test of goodwill for the reporting unit and did not recognize any impairment losses.  In January 2014 the FASB issued Accounting Standards Update 2014-02 permitting a qualifying private company to elect to amortize goodwill. Goodwill Amortization Election - Example
  13. 13. 13#CBIZMHMwebinar#CBIZMHMwebinar  Management of CraftSetters has decided to adopt the amortization method for goodwill for their 2013 financial statements which have not been made available for issuance.  Step 1: Is CraftSetters, Inc eligible to adopt the accounting policy election?  Does the entity fall under the not-for-profit entity guidance or is it an employee benefit plan? No  Is CraftSetters, Inc a public company? Maybe? Goodwill Amortization Election - Example
  14. 14. 14#CBIZMHMwebinar#CBIZMHMwebinar  Definition of a public business entity as provided by ASU 2013-12:  Is CraftSetters required to or does it voluntary file its financial statements with the SEC? No  Is CraftSetters required by the 1934 act to furnish financial statements to another regulator? No  Is CraftSetters required to furnish financial statements to a regulator in preparation for the sale of unrestricted securities? No Evaluating if CraftSetters is a Public Entity
  15. 15. 15#CBIZMHMwebinar#CBIZMHMwebinar  Definition of a public business entity as provided by ASU 2013-12 (continued):  CraftSetters has issued or is a conduit bond obligor? No  CraftSetters:  Has unrestricted securities, and Yes  By law, regulation or contract is required to make U.S. GAAP financial statements available to the public No Step 1 conclusion: CraftSetters is a qualifying private company. Evaluating if CraftSetters is a Public Entity
  16. 16. 16#CBIZMHMwebinar#CBIZMHMwebinar  Step 2: Identify all existing goodwill at date of adoption:  $10 million of goodwill related to the acquisition of Eye Repair Store  Equity method investment in Land Developers, Inc. with a $2 million purchase price and a $1 million carrying value — all $1 million is attributable to goodwill. Goodwill Amortization Election - Example
  17. 17. 17#CBIZMHMwebinar#CBIZMHMwebinar  Step 3: Assign useful life to existing goodwill  Should the estimated useful life be less then 10 years? 10 years  Step 4: Determine a policy for impairment testing  Will impairment be tested at the entity or reporting unit level? Reporting unit because of the relative success of Eye Repair Store Goodwill Amortization Election - Example
  18. 18. 18#CBIZMHMwebinar#CBIZMHMwebinar  Step 5: Determine amortization for the year of adoption  Did a triggering event occur? No  Compute amortization beginning January 1, 2013.  Eye Repair Store:  $10,000,000 / 10 years = $1,000,000 of amortization  Land Development equity method investment:  $1,000,000 / 10 years = $100,000 of amortization attributed to the equity method investment income  Note that the balance of the equity method investment is still subject to impairment under the equity method of accounting Goodwill Amortization Election - Example
  19. 19. 19#CBIZMHMwebinar#CBIZMHMwebinar Simplified Hedge Accounting  The accounting alternative permitting the simplified hedge accounting method for certain interest rate swaps was finalized on January 16. (ASU 2014-03)  Qualifying private companies can adopt this standard for any financial statements not already made available for issuance.  Excludes not-for-profit entities, employee benefit plans, public business entities and financial institutions ASU - Interest Rate Swaps
  20. 20. 20#CBIZMHMwebinar#CBIZMHMwebinar Simplified Hedge Accounting  Only applies to qualifying receive-variable, pay-fixed interest rate swaps  Permits hedge accounting adoption up until the financial statements are made available for issuance  Reduced documentation to apply hedge accounting  Use of settlement value instead of fair value Effective for period beginning after December 31, 2014, but early adoption is permitted. ASU - Interest Rate Swaps
  21. 21. 21#CBIZMHMwebinar#CBIZMHMwebinar  The PCC removed its project on the combined instruments approach for hedge accounting.  FASB endorsed the PCC alternative for the application of variable interest entity accounting (consolidation) for certain commonly controlled leasing arrangements.  Expected to be effective for periods beginning after December 15, 2014.  Early adoption will be permitted.  Retrospective adoption will be required. Other Private Company Council Updates
  22. 22. 22#CBIZMHMwebinar#CBIZMHMwebinar  A qualifying private company may elect to not apply the VIE model to leasing entities when:  The lessor entity and the private company are under common control  The private company has a lease arrangement with the lessor entity  Substantially all the activity between the two entities is related to the leasing activities between the two entities, and  Any obligations of the lessor entity that are guaranteed or collateralized Election applies to all qualifying leasing arrangements Commonly Controlled Leasing Entity
  23. 23. 23#CBIZMHMwebinar#CBIZMHMwebinar  Investments – equity method and joint ventures: accounting for investments in qualified affordable housing projects (ASU 2014-01)  Receivables – troubled debt restructuring (ASU 2014-04)  Service concession arrangements (ASU 2014-05)  Classification of certain government-guaranteed residential mortgage loans upon foreclosure (approved by FASB) EITF Activity
  24. 24. 24#CBIZMHMwebinar#CBIZMHMwebinar  Accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period (final consensus)  Recognition of new accounting basis (pushdown) in certain circumstances (consensus for exposure draft) EITF Issues
  25. 25. 25#CBIZMHMwebinar#CBIZMHMwebinar FASB voted to remove development stage entities  Development stage entities:  Devote substantially all efforts to establishing a new business, and  Have not commenced planned principal operations or have begun operations but have not had significant revenues  Eliminates inception to date presentation requirements and disclosures  Added additional risk disclosures for entities that have not begun operations  Removed guidance for development stage entities from the VIE model Development Stage Entities
  26. 26. 26#CBIZMHMwebinar#CBIZMHMwebinar  Conceptual framework for financial reporting; Chapter 8, notes to the financial statements  Exposure draft issued with comments due July 14, 2014  Objective is to provide a framework to assist in streamlining financial statement disclosures  Next phase is the Entity’s Decision Process. Disclosure Project
  27. 27. 27#CBIZMHMwebinar#CBIZMHMwebinar  Increase the usefulness of information about insurance contracts  FASB recently decided to limit the scope to those entities that are insurance entities.  However, the FASB will consider including certain other contracts on a case-by-case basis.  Most likely will result in final standards that are not converged with the IASB Convergence - Insurance Project
  28. 28. 28#CBIZMHMwebinar#CBIZMHMwebinar Classification  Measurement of equity instruments at fair value recognized through net income  Excluding equity method investments and instruments that fall under the practicability exception  Will not require an entity to separately evaluate cash flow characteristics  The host contract after bifurcating an embedded derivative  Other assets that are not required to be bifurcated  Permit an irrevocable fair value option for hybrid financial assets and liabilities with embedded derivatives that require bifurcation Convergence - Financial Instruments Project
  29. 29. 29#CBIZMHMwebinar#CBIZMHMwebinar  Revenue recognition  Final standard likely in Q2 2014  Leasing  IASB and FASB meetings Other Convergence Projects
  30. 30. PCAOB UPDATE
  31. 31. 31#CBIZMHMwebinar#CBIZMHMwebinar PCAOB & SEC Issued:  Attestation Standard No. 1: Examination engagements regarding compliance reports of brokers and dealers  Attestation Standard No. 2: Review engagements regarding exemption reports of brokers and dealers  Auditing Standard No. 17: Auditing supplemental information accompanying audited financial statements PCAOB Update
  32. 32. 32#CBIZMHMwebinar#CBIZMHMwebinar Transparency Project  Proposal to require disclosure of the following:  The name of the engagement partner  Names of participants in the audit that are not employees of the audit firm  Comment period on the transparency project ended on March 17. PCAOB Update
  33. 33. 33#CBIZMHMwebinar#CBIZMHMwebinar Other Developments  The SEC has removed the project on auditor rotation from its agenda. PCAOB Update
  34. 34. FEDERAL TAX UPDATE
  35. 35. 35#CBIZMHMwebinar  “Tax extenders” refer to legislation to extend the package of expiring tax provisions that typically get temporarily extended by Congress. The extensions tend to be for short periods of time (e.g., one – two years).  Many feel that the extension of may of these provisions is being “tied” up by Congress as they await a more comprehensive tax reform.  Chair of Senate Finance Committee Ron Wyden (D- Ore.) indicated committee will take up extenders in April. “Tax Extenders” - Expiring Tax Provisions
  36. 36. 36#CBIZMHMwebinar “Tax Extenders” - Expired Business Provisions  Business tax provisions that expired 12/31/13 include:  Research and experimentation credit;  Work opportunity tax credit;  Increase in expensing to $500,000/$2,000,000 and expanded definition of §179 property;  Bonus depreciation;  Exceptions under Subpart F for active financing income;  Look-through treatment of payments between controlled foreign corporations (“CFC ”);  Special rules for qualified small business stock;  Reduction in S corporation recognition period for built-in gains tax;  15-year straight line cost recovery for qualified leasehold, restaurant, and retail improvements
  37. 37. 37#CBIZMHMwebinar  On 2/26, Chairman of House Ways and Means Committee Dave Camp (R-Mich.) released discussion draft of a comprehensive tax reform bill  Would be most sweeping tax reform since 1986  Reaction on Capitol Hill was mixed  Impacts all areas of income taxation, including:  Businesses  Individuals  International  Retirement plans Camp Tax Reform Proposal
  38. 38. 38#CBIZMHMwebinar Camp Proposal – Notable Business Reforms  Top corporate tax rate of 25% (down from 35%)  Sec. 179 expensing election capped at $250,000  Corporate NOL limited to 90% of taxable income  Software development / R&D amortized over 5 years  Research credit made permanent  70% of inc. to active LPs, S corp S/Hs subject to S/E tax  Portion of carried interest income taxed as ordinary  Most businesses with gross receipts > $10 million required to use accrual basis  Income required to be recognized no later than when recognized for financial statement purposes
  39. 39. 39#CBIZMHMwebinar Camp Proposal – Business Reforms, cont’d.  Repealed provisions would include (not all inclusive):  Accelerated depreciation  DPAD (phased out over several years)  Like-kind exchanges  LIFO and LCM inventory accounting  Corporate AMT  Work opportunity tax credit  Energy credits and energy efficient building deduction  Gain exclusion on sale of small business stock  Exception to $1 million compensation deduction limit for stock options, commissions, etc.
  40. 40. 40#CBIZMHMwebinar Camp Proposal – Notable International Reforms  Subpart F replaced with 95% exemption on foreign dividends paid to 10% US corporate shareholders  Foreign tax credit reforms  No indirect credit on foreign taxes attributable to exempted dividends  Only direct expenses attributable to foreign sub allocated against foreign source income
  41. 41. 41#CBIZMHMwebinar Obama Fiscal Year 2015 Budget Proposals  President Obama released his annual list of budget proposals on March 4th  Over 80% of the tax proposals are the same as in last year’s budget proposal  Common themes:  Raise revenue on higher income individuals  Help working families  Encourage retirement savings  Encourage job creation  Close “loopholes”
  42. 42. 42#CBIZMHMwebinar Obama Budget – Notable Business Provisions  Extenders:  Permanently extend R&E credit  Permanently extend $500,000 expensing election  Permanently extend 100% gain exclusion on small business stock  Permanently extend Work Opportunity Tax Credit  Holdovers from previous budget:  Tax carried interests as ordinary income  Repeal LIFO and LCM inventory accounting methods  “Promise Zones” to encourage investment in disadvantaged areas  Extend recovery period on corporate jets  Renew and expand energy incentives
  43. 43. 43#CBIZMHMwebinar Obama Budget – Business Provisions, cont’d.  New provisions:  Limit capital gain deferral on like-kind exchanges of real estate to $1 million per year  Impose S/E tax on active owners of professional services businesses
  44. 44. 44#CBIZMHMwebinar Affordable Care Act Update  Employer shared responsibility payment:  Nondeductible excise tax on large employees who do not provide affordable & adequate health coverage to full-time employees  Modifications:  Delayed until 2016 for certain employers  Percentage of employees who must be offered minimum essential coverage decreased from 95% to 70% in 2015 Full-time Employees 2014 2015 2016 Less than 50 N/A N/A N/A 50 – 99 N/A N/A 95% 100 or more N/A 70% 95%
  45. 45. 45#CBIZMHMwebinar Tangible Property Regulations Update  Timeline:  September 13, 2013 – Treasury issued:  Final regulations on capitalization of costs incurred to acquire, maintain, repair and replace tangible property  New proposed regulations on the disposition of tangible property  January 24, 2014 – IRS issued implementation guidance on final capitalization regulations (Rev Proc 2014-16)  February 28, 2014 – IRS issued implementation guidance on proposed disposition regulations (Rev Proc 2014-17)  Effective Date:  Tax years beginning on or after January 1, 2014  Optionally may be applied for the 2012 and 2013 tax years
  46. 46. 46#CBIZMHMwebinar Rev Proc 2014-16 – Capitalization Rules  Common automatic accounting method changes:  Deducting as repairs amounts that were typically capitalized  Deducting under routine maintenance safe harbor amounts that were typically capitalized  Deducting payments for non-incidental supplies in year used  Deducting payments for incidental supplies in year paid or incurred  IRS encouraging compliance by:  Waiving scope limitations  Simplifying filing requirements for small taxpayers  Not requiring full compliance with 263A UNICAP rules
  47. 47. 47#CBIZMHMwebinar Rev Proc 2014-17 – Disposition Rules  Partial dispositions of tangible property  Previously an accounting method under temporary regulations  Now an annual election under new proposed regulations  Rev Proc 2014-17 allows taxpayers to make a late partial disposition election on property retired in a previous tax year  Rev Proc 2014-17 permits use of statistical sampling to identify assets disposed in prior years  Taxpayers that made a partial disposition under the temporary regulations will still need a late partial disposition election  General asset account (GAA) elections  Temporary regulations gave taxpayers ability to elect to recognize gain or loss on disposal of asset in a GAA  New proposed regulations eliminated that ability  Rev Proc 2014-17 allows taxpayers to revoke GAA elections under temporary regulations
  48. 48. 48#CBIZMHMwebinar Eye on Washington: Quarterly Business Tax Update For more information on tax developments that may impact your business, attend our upcoming quarterly tax update webcast: May 7th May 13th May 14th All times 2 – 3 pm EDT Visit www.cbiz.com to register
  49. 49. 49#CBIZMHMwebinar#CBIZMHMwebinar Questions?
  50. 50. 50#CBIZMHMwebinar#CBIZMHMwebinar  Join us for these courses:  Repeat broadcast on April 10  Second Quarter Update on June 26  Third Quarter Update on Sept. 11  Fourth Quarter Update on Dec. 11  Read these related publications:  FASB Votes to Eliminate Development Stage Entities  Insurance Contracts Joint Project Update  Changes to the Accounting for Interest Rate Swaps used in Hedging Relationships - Private Companies  Changes in Accounting for Goodwill for Private Companies If You Enjoyed This Webinar…
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