OVERVIEW
• Notice 2012-73 delays effective date of Temporary Regulations effective for taxable years beginning on of after Jan. 1, 2014
• IRS will modify portions of Temp Regs related to De Mininis amounts, Dispositions, and Routine Maintenance Safe Harbor in 2013
• Rev Proc 2012-19 (M&S, Capital Expenditures, Transaction Costs, and Improvements) and 2012-20 (Leased Property, GAA, MACRS Property, Dispositions of MACRS Property) provide guidance including Sec 481(a) method changes
• Rev Proc 2012-20 permits late-GAA election for property placed in service prior to 2012 by filing Form 3115 within first two tax years beginning on or after Jan. 1, 2012 and Taxpayers should consider to timely elect GAA treatment for assets placed in service in 2012 on Form 4562 to take advantage of favorable disposition rules, especially for real property
This document summarizes International Accounting Standard 8 which provides guidance on selecting and changing accounting policies, accounting for changes in estimates, and correcting errors. The standard aims to enhance the relevance and reliability of financial statements over time and in comparison to other entities. It addresses topics such as retrospectively applying new policies, accounting for policy changes, and disclosing the nature and amount of errors or changes in estimates. The goal is to provide consistency and comparability in financial reporting.
The document provides an overview of accounting standards in India. It discusses the background and authority of accounting standards set by the Institute of Chartered Accountants of India (ICAI). It also summarizes key compliance standards such as AS-2 on valuation of inventories, AS-6 on accounting for depreciation, and AS-9 on revenue recognition. Additionally, it covers reporting standards including AS-3 on cash flow statements, AS-13 on accounting for investments, and AS-18 on related party disclosures.
AS - 1 (Disclosure of Accounting Policies)Sai Youdhister
This document discusses the disclosure of accounting policies. It states that accounting policies refer to the principles and methods used in preparing financial statements. The selection of policies is the responsibility of management and varies between entities. Key considerations for selecting policies include prudence, substance over form, and materiality. There must be disclosure of any changes in fundamental accounting policies from the previous year. The disclosure aims to promote understanding of financial statements and should include all relevant information in a single place.
This document discusses accelerated cost recovery and depreciation. It covers topics such as capitalized costs versus operating expenses, depreciation legislation including MACRS, terminology, adjusted tax basis, repair regulations, depreciation methods, conventions for personal and real property, section 179 expensing, and bonus depreciation. Key points include how depreciation and amortization allow businesses to recover capitalized costs of assets over time for tax purposes.
This document discusses the future of UK GAAP and the key changes that will result from the implementation of FRS 102. Some of the major changes include more intangible assets being recognized, changes to the accounting of leases, holiday pay, and investment properties. These changes could impact reported profits, taxes, and financial covenants. Companies need to understand how the new standards will affect them and prepare by gathering information, reviewing systems, and planning their transition approach and timetable. An early focus should be on fixed asset values, financial instruments, acquisition planning, and calculating holiday pay accruals.
The document discusses accounting standards and International Financial Reporting Standards (IFRS). It provides an overview of 32 accounting standards (AS) issued by the Institute of Chartered Accountants of India (ICAI) that provide guidelines for accounting treatments and disclosures. It also summarizes 21 International Accounting Standards (IAS) issued by the International Accounting Standards Board (IASB). The goals of accounting standards and IFRS are to harmonize accounting policies, eliminate non-comparability, improve reliability of financial statements, and ensure transparency and consistency for the benefit of the economy, investors, industry and accounting professionals.
This presentation provides an update on both recently issued and forthcoming pronouncements of the Financial Accounting Standards Board (FASB). Through this presentation, you should be able to identify what changes are effective for your 2015 financial statements, including changes you may choose to early adopt.
This document discusses interim financial reporting requirements under MFRS 134. It defines interim financial reports and explains their importance in providing timely information to investors. The document outlines the content requirements for interim financial statements, including comparative figures. It also discusses the recognition and measurement principles, noting that the same accounting policies must be applied as in annual reports. Significant events affecting financial position or performance since the last annual report must be disclosed.
This document summarizes International Accounting Standard 8 which provides guidance on selecting and changing accounting policies, accounting for changes in estimates, and correcting errors. The standard aims to enhance the relevance and reliability of financial statements over time and in comparison to other entities. It addresses topics such as retrospectively applying new policies, accounting for policy changes, and disclosing the nature and amount of errors or changes in estimates. The goal is to provide consistency and comparability in financial reporting.
The document provides an overview of accounting standards in India. It discusses the background and authority of accounting standards set by the Institute of Chartered Accountants of India (ICAI). It also summarizes key compliance standards such as AS-2 on valuation of inventories, AS-6 on accounting for depreciation, and AS-9 on revenue recognition. Additionally, it covers reporting standards including AS-3 on cash flow statements, AS-13 on accounting for investments, and AS-18 on related party disclosures.
AS - 1 (Disclosure of Accounting Policies)Sai Youdhister
This document discusses the disclosure of accounting policies. It states that accounting policies refer to the principles and methods used in preparing financial statements. The selection of policies is the responsibility of management and varies between entities. Key considerations for selecting policies include prudence, substance over form, and materiality. There must be disclosure of any changes in fundamental accounting policies from the previous year. The disclosure aims to promote understanding of financial statements and should include all relevant information in a single place.
This document discusses accelerated cost recovery and depreciation. It covers topics such as capitalized costs versus operating expenses, depreciation legislation including MACRS, terminology, adjusted tax basis, repair regulations, depreciation methods, conventions for personal and real property, section 179 expensing, and bonus depreciation. Key points include how depreciation and amortization allow businesses to recover capitalized costs of assets over time for tax purposes.
This document discusses the future of UK GAAP and the key changes that will result from the implementation of FRS 102. Some of the major changes include more intangible assets being recognized, changes to the accounting of leases, holiday pay, and investment properties. These changes could impact reported profits, taxes, and financial covenants. Companies need to understand how the new standards will affect them and prepare by gathering information, reviewing systems, and planning their transition approach and timetable. An early focus should be on fixed asset values, financial instruments, acquisition planning, and calculating holiday pay accruals.
The document discusses accounting standards and International Financial Reporting Standards (IFRS). It provides an overview of 32 accounting standards (AS) issued by the Institute of Chartered Accountants of India (ICAI) that provide guidelines for accounting treatments and disclosures. It also summarizes 21 International Accounting Standards (IAS) issued by the International Accounting Standards Board (IASB). The goals of accounting standards and IFRS are to harmonize accounting policies, eliminate non-comparability, improve reliability of financial statements, and ensure transparency and consistency for the benefit of the economy, investors, industry and accounting professionals.
This presentation provides an update on both recently issued and forthcoming pronouncements of the Financial Accounting Standards Board (FASB). Through this presentation, you should be able to identify what changes are effective for your 2015 financial statements, including changes you may choose to early adopt.
This document discusses interim financial reporting requirements under MFRS 134. It defines interim financial reports and explains their importance in providing timely information to investors. The document outlines the content requirements for interim financial statements, including comparative figures. It also discusses the recognition and measurement principles, noting that the same accounting policies must be applied as in annual reports. Significant events affecting financial position or performance since the last annual report must be disclosed.
This document presents an introduction to a presentation on IAS 8 Accounting Policies, Changes in Accounting Estimates, and Errors. It lists the names and IDs of the presentation team members and provides an overview of the objectives and requirements of IAS 8. It discusses accounting policies, changes in estimates, and errors, including examples. It also includes sample financial statement extracts and solutions to demonstrate the accounting treatment for changes in policies, estimates, and corrections of prior period errors.
This document provides an overview of accounting standards and corporate accounting practices in India. It discusses key points about various accounting standards issued by the Accounting Standards Board of India, including standards on revenue recognition (AS-9), valuation of inventories (AS-2), depreciation (AS-6), foreign exchange rates (AS-11), investments (AS-13), borrowing costs (AS-16), segment reporting (AS-17), related party disclosures (AS-18), and earnings per share (AS-20). It also outlines responsibilities of chartered accountants to disclose any non-compliance with accounting standards. The standards are applicable to business and commercial organizations from the specified effective dates.
The document compares Indian Accounting Standards and International Financial Reporting Standards regarding the accounting treatment of fixed assets. Some key differences include:
- Under IAS 16, subsequent replacement costs of parts must be capitalized, whereas AS 10 only requires capitalization if it increases future benefits.
- IAS 16 requires capitalization of major inspection costs, whereas AS 10 does not.
- IAS 16 does not allow gains on derecognition of assets to be treated as revenue, but AS 10 is silent on this.
The document also discusses the accounting for government grants, foreign currency transactions, and integral versus non-integral foreign operations.
This document provides guidance on selecting and applying accounting policies, making changes to accounting estimates and corrections of errors. It discusses key aspects such as:
- Selecting accounting policies that result in relevant and reliable financial statements.
- Applying policies consistently unless specifically directed otherwise.
- Only changing policies if required by a new standard or to provide more useful information.
- Accounting for changes in estimates and errors in prior period financial statements.
- Several examples are provided to illustrate these concepts.
This document outlines disclosure requirements for accounting policies under Accounting Standard 1. It discusses the need to disclose significant accounting policies to provide transparency and allow proper understanding of financial statements. Key requirements include disclosing all significant policies as a separate part of the financial statements. Any changes in policies that materially affect the financials, or are reasonably expected to do so in the future, must also be disclosed along with details of the impact. Areas where alternative policies can be applied, like depreciation and investments, are provided as examples. The fundamental assumptions of going concern, consistency and accrual must also be disclosed if not followed.
Financial reporting involves the disclosure of a company's financial results and performance over a specified period. It can be annual or interim. Annual reports cover a full financial year, while interim reports are for periods shorter than a year. Both types of reports include financial statements such as the balance sheet, income statement, cash flow statement, and notes. Interim reports provide timely information to stakeholders and follow the same recognition and measurement principles as annual reports, with estimates used more frequently given the shorter periods. The objective is to present a reliable picture of a company's financial position and performance.
IAS 16 provides guidance on accounting for property, plant and equipment. It requires initial recognition of assets at cost and subsequent measurement using either the cost model or revaluation model. It also provides guidance on depreciation, derecognition, and disclosures of property, plant and equipment. Some key differences from Indian GAAP include requirements for regular revaluation, a component approach for depreciation, and capitalization of certain subsequent expenditures.
Thermo Fisher provides non-GAAP financial measures to help investors understand the company's core operating performance by excluding items outside normal operations or difficult to forecast. These include restructuring costs, amortization of acquisition intangibles, certain other gains/losses and tax adjustments. Adjusted measures include EBITDA and free cash flow. Management uses these to measure performance, make decisions and for compensation. The document provides reconciliations of GAAP to non-GAAP measures for revenues, operating income, net income and EPS from 2009-2013.
IAS 8 provides guidance on selecting accounting policies, accounting for changes in accounting policies, accounting estimates, and accounting for errors. It requires accounting policies to be selected based on relevance and reliability. Changes in accounting policies are accounted for retrospectively unless transitional provisions exist. Changes in estimates are accounted for prospectively. Errors are corrected retrospectively through restatement unless impracticable, in which case corrections affect the current period.
Ppt on accounting standards prepared by Prof.Satish R.TajaneDr. Satish Tajane
The document provides an overview of accounting standards in India. It discusses the key bodies that regulate accounting standards and the process for developing and prescribing standards. It then lists and briefly describes 30 Indian Accounting Standards (AS), covering their objectives and key requirements. The standards relate to areas like disclosure of accounting policies, valuation of inventories, treatment of contingencies, revenue recognition, depreciation, foreign exchange rates, investments and more.
The document discusses international accounting standards. It describes that from 1973 to 2000, the International Accounting Standards Committee issued International Accounting Standards. In 2001, the IASC was replaced by the International Accounting Standards Board which issues International Financial Reporting Standards adopted by over 125 countries. IFRS are principles-based standards drafted for understandability. Application requires increased use of fair values for asset and liability measurement. The document also provides details on specific standards like IAS 1 regarding financial statement presentation.
Interim financial reporting provides essential information to investors throughout the year to help evaluate a company's performance and financial condition between annual reports. Accounting Standard 25 outlines requirements for interim reporting, including minimum components, recognition and measurement principles, and disclosure standards. Legal requirements in India according to SEBI mandate that listed companies publish unaudited quarterly financial results within one month of the quarter end along with additional disclosures. Issues with interim reporting include accounting problems due to uneven costs and revenues, and limited disclosure compared to annual reports. Improving interim reporting involves aligning reporting periods with operating cycles and allocating annual costs more evenly across interim periods.
Complete presentation of chapter 8 "Analysis of Long-Lived Assets: Analysis of Depreciation & Impairment" from "Analysis and Use of Financial Statement by White & Sondhi Edition 3
This document outlines International Accounting Standard 8 which provides guidance on selecting and changing accounting policies, accounting for changes in estimates, and correcting errors. The standard aims to enhance the relevance and reliability of financial statements and their comparability over time. It defines key terms and establishes criteria for changes to accounting policies, including the required disclosures. It also addresses accounting for revisions to estimates due to new information or circumstances, noting these revisions are not corrections to prior periods.
This document provides an overview of key differences between Indian GAAP and US GAAP. It defines GAAP as the common set of accounting principles, standards and procedures used to compile financial statements. Some major differences discussed include underlying assumptions, financial statement presentation formats, treatment of investments, consolidation of subsidiaries, accounting for foreign currency transactions, and accounting for expenses such as depreciation, pre-operating expenses, and employee benefits. The document also explains some accounting concepts and terms referenced in discussing the differences between Indian and US GAAP.
This document outlines accounting standard AS 1 on the disclosure of accounting policies. It discusses the need for disclosing significant accounting policies to provide transparency and allow for meaningful comparison between financial statements. The standard specifies that all significant policies, such as methods of depreciation, treatment of foreign currency items, and valuation of investments, should be disclosed as a single statement within the financial statements. It also mandates disclosure of any changes in policies and their material impacts. By standardizing policy disclosures, this aims to improve understanding of reported financial information.
This document summarizes Accounting Standards 1-15 presented by Dr. Rana Singh. It discusses the key aspects of each standard including disclosure of accounting policies, valuation of inventories, cash flow reporting, contingencies, revenue recognition, depreciation accounting, construction contracts, research and development, and accounting for changes in policies. It also provides examples of how some large Indian companies apply the standards in their financial reporting and accounting policies.
Ind AS 34 provides the requirements for interim financial reporting, requiring listed companies to publish interim financial reports on a quarterly basis. These interim reports must include at a minimum condensed statements of financial position, comprehensive income, changes in equity and cash flows, along with selected explanatory notes. The standard specifies the recognition and measurement principles to be applied in interim reports, which should use the same accounting policies as the annual financial statements.
Here are the steps to correct the prior period error in accordance with IAS 8:
1. Restate the financial statements for 2017 by decreasing net profit by 30,000 (to recognize the omitted amortization expense).
2. Increase accumulated depreciation by 30,000 as of January 1, 2017.
3. Decrease retained earnings as of January 1, 2017 by 30,000 (net of tax).
4. Disclose the nature of the prior period error and the adjustment to each financial statement line item affected.
5. No adjustment is required for 2018 financial statements.
The key requirements of IAS 8 are to retrospectively restate the prior period financial statements for the effects of
This document outlines the topics that will be covered in a Lifespan Seminar on practical health and wellness. It discusses the evolution of the universe, Earth, life, and humans. It then covers techniques for managing stress, nutrition, rest, and an active lifestyle. Additional topics include our place in the universe, biology, the mind, body consciousness, breathing, pressure points, sleep cycles, brainwaves, and guidelines for a long healthy life. The seminar materials provide audio, video, articles, exercises and recipes on mind-body health practices.
The document announces a health and wellness seminar to be held on July 21, 2012 at Pasta Roni in Bonifacio Global City. The seminar will include a welcome address by Ms. Menchu Carrasco-Rogacion and two talks - the first called "The Spices of Life" by Dr. Joy Holgado, and the second on "Basic Concepts and Routine Tests for Women's Killer Diseases" by Dr. Elvie Rosales. Registration will be from 5-6pm.
This document presents an introduction to a presentation on IAS 8 Accounting Policies, Changes in Accounting Estimates, and Errors. It lists the names and IDs of the presentation team members and provides an overview of the objectives and requirements of IAS 8. It discusses accounting policies, changes in estimates, and errors, including examples. It also includes sample financial statement extracts and solutions to demonstrate the accounting treatment for changes in policies, estimates, and corrections of prior period errors.
This document provides an overview of accounting standards and corporate accounting practices in India. It discusses key points about various accounting standards issued by the Accounting Standards Board of India, including standards on revenue recognition (AS-9), valuation of inventories (AS-2), depreciation (AS-6), foreign exchange rates (AS-11), investments (AS-13), borrowing costs (AS-16), segment reporting (AS-17), related party disclosures (AS-18), and earnings per share (AS-20). It also outlines responsibilities of chartered accountants to disclose any non-compliance with accounting standards. The standards are applicable to business and commercial organizations from the specified effective dates.
The document compares Indian Accounting Standards and International Financial Reporting Standards regarding the accounting treatment of fixed assets. Some key differences include:
- Under IAS 16, subsequent replacement costs of parts must be capitalized, whereas AS 10 only requires capitalization if it increases future benefits.
- IAS 16 requires capitalization of major inspection costs, whereas AS 10 does not.
- IAS 16 does not allow gains on derecognition of assets to be treated as revenue, but AS 10 is silent on this.
The document also discusses the accounting for government grants, foreign currency transactions, and integral versus non-integral foreign operations.
This document provides guidance on selecting and applying accounting policies, making changes to accounting estimates and corrections of errors. It discusses key aspects such as:
- Selecting accounting policies that result in relevant and reliable financial statements.
- Applying policies consistently unless specifically directed otherwise.
- Only changing policies if required by a new standard or to provide more useful information.
- Accounting for changes in estimates and errors in prior period financial statements.
- Several examples are provided to illustrate these concepts.
This document outlines disclosure requirements for accounting policies under Accounting Standard 1. It discusses the need to disclose significant accounting policies to provide transparency and allow proper understanding of financial statements. Key requirements include disclosing all significant policies as a separate part of the financial statements. Any changes in policies that materially affect the financials, or are reasonably expected to do so in the future, must also be disclosed along with details of the impact. Areas where alternative policies can be applied, like depreciation and investments, are provided as examples. The fundamental assumptions of going concern, consistency and accrual must also be disclosed if not followed.
Financial reporting involves the disclosure of a company's financial results and performance over a specified period. It can be annual or interim. Annual reports cover a full financial year, while interim reports are for periods shorter than a year. Both types of reports include financial statements such as the balance sheet, income statement, cash flow statement, and notes. Interim reports provide timely information to stakeholders and follow the same recognition and measurement principles as annual reports, with estimates used more frequently given the shorter periods. The objective is to present a reliable picture of a company's financial position and performance.
IAS 16 provides guidance on accounting for property, plant and equipment. It requires initial recognition of assets at cost and subsequent measurement using either the cost model or revaluation model. It also provides guidance on depreciation, derecognition, and disclosures of property, plant and equipment. Some key differences from Indian GAAP include requirements for regular revaluation, a component approach for depreciation, and capitalization of certain subsequent expenditures.
Thermo Fisher provides non-GAAP financial measures to help investors understand the company's core operating performance by excluding items outside normal operations or difficult to forecast. These include restructuring costs, amortization of acquisition intangibles, certain other gains/losses and tax adjustments. Adjusted measures include EBITDA and free cash flow. Management uses these to measure performance, make decisions and for compensation. The document provides reconciliations of GAAP to non-GAAP measures for revenues, operating income, net income and EPS from 2009-2013.
IAS 8 provides guidance on selecting accounting policies, accounting for changes in accounting policies, accounting estimates, and accounting for errors. It requires accounting policies to be selected based on relevance and reliability. Changes in accounting policies are accounted for retrospectively unless transitional provisions exist. Changes in estimates are accounted for prospectively. Errors are corrected retrospectively through restatement unless impracticable, in which case corrections affect the current period.
Ppt on accounting standards prepared by Prof.Satish R.TajaneDr. Satish Tajane
The document provides an overview of accounting standards in India. It discusses the key bodies that regulate accounting standards and the process for developing and prescribing standards. It then lists and briefly describes 30 Indian Accounting Standards (AS), covering their objectives and key requirements. The standards relate to areas like disclosure of accounting policies, valuation of inventories, treatment of contingencies, revenue recognition, depreciation, foreign exchange rates, investments and more.
The document discusses international accounting standards. It describes that from 1973 to 2000, the International Accounting Standards Committee issued International Accounting Standards. In 2001, the IASC was replaced by the International Accounting Standards Board which issues International Financial Reporting Standards adopted by over 125 countries. IFRS are principles-based standards drafted for understandability. Application requires increased use of fair values for asset and liability measurement. The document also provides details on specific standards like IAS 1 regarding financial statement presentation.
Interim financial reporting provides essential information to investors throughout the year to help evaluate a company's performance and financial condition between annual reports. Accounting Standard 25 outlines requirements for interim reporting, including minimum components, recognition and measurement principles, and disclosure standards. Legal requirements in India according to SEBI mandate that listed companies publish unaudited quarterly financial results within one month of the quarter end along with additional disclosures. Issues with interim reporting include accounting problems due to uneven costs and revenues, and limited disclosure compared to annual reports. Improving interim reporting involves aligning reporting periods with operating cycles and allocating annual costs more evenly across interim periods.
Complete presentation of chapter 8 "Analysis of Long-Lived Assets: Analysis of Depreciation & Impairment" from "Analysis and Use of Financial Statement by White & Sondhi Edition 3
This document outlines International Accounting Standard 8 which provides guidance on selecting and changing accounting policies, accounting for changes in estimates, and correcting errors. The standard aims to enhance the relevance and reliability of financial statements and their comparability over time. It defines key terms and establishes criteria for changes to accounting policies, including the required disclosures. It also addresses accounting for revisions to estimates due to new information or circumstances, noting these revisions are not corrections to prior periods.
This document provides an overview of key differences between Indian GAAP and US GAAP. It defines GAAP as the common set of accounting principles, standards and procedures used to compile financial statements. Some major differences discussed include underlying assumptions, financial statement presentation formats, treatment of investments, consolidation of subsidiaries, accounting for foreign currency transactions, and accounting for expenses such as depreciation, pre-operating expenses, and employee benefits. The document also explains some accounting concepts and terms referenced in discussing the differences between Indian and US GAAP.
This document outlines accounting standard AS 1 on the disclosure of accounting policies. It discusses the need for disclosing significant accounting policies to provide transparency and allow for meaningful comparison between financial statements. The standard specifies that all significant policies, such as methods of depreciation, treatment of foreign currency items, and valuation of investments, should be disclosed as a single statement within the financial statements. It also mandates disclosure of any changes in policies and their material impacts. By standardizing policy disclosures, this aims to improve understanding of reported financial information.
This document summarizes Accounting Standards 1-15 presented by Dr. Rana Singh. It discusses the key aspects of each standard including disclosure of accounting policies, valuation of inventories, cash flow reporting, contingencies, revenue recognition, depreciation accounting, construction contracts, research and development, and accounting for changes in policies. It also provides examples of how some large Indian companies apply the standards in their financial reporting and accounting policies.
Ind AS 34 provides the requirements for interim financial reporting, requiring listed companies to publish interim financial reports on a quarterly basis. These interim reports must include at a minimum condensed statements of financial position, comprehensive income, changes in equity and cash flows, along with selected explanatory notes. The standard specifies the recognition and measurement principles to be applied in interim reports, which should use the same accounting policies as the annual financial statements.
Here are the steps to correct the prior period error in accordance with IAS 8:
1. Restate the financial statements for 2017 by decreasing net profit by 30,000 (to recognize the omitted amortization expense).
2. Increase accumulated depreciation by 30,000 as of January 1, 2017.
3. Decrease retained earnings as of January 1, 2017 by 30,000 (net of tax).
4. Disclose the nature of the prior period error and the adjustment to each financial statement line item affected.
5. No adjustment is required for 2018 financial statements.
The key requirements of IAS 8 are to retrospectively restate the prior period financial statements for the effects of
This document outlines the topics that will be covered in a Lifespan Seminar on practical health and wellness. It discusses the evolution of the universe, Earth, life, and humans. It then covers techniques for managing stress, nutrition, rest, and an active lifestyle. Additional topics include our place in the universe, biology, the mind, body consciousness, breathing, pressure points, sleep cycles, brainwaves, and guidelines for a long healthy life. The seminar materials provide audio, video, articles, exercises and recipes on mind-body health practices.
The document announces a health and wellness seminar to be held on July 21, 2012 at Pasta Roni in Bonifacio Global City. The seminar will include a welcome address by Ms. Menchu Carrasco-Rogacion and two talks - the first called "The Spices of Life" by Dr. Joy Holgado, and the second on "Basic Concepts and Routine Tests for Women's Killer Diseases" by Dr. Elvie Rosales. Registration will be from 5-6pm.
America’s Health & Wellness System is designed to incorporate wellness into each American’s life to
create better long term health and fewer chronic health issues. This plan represents a radical departure
from our current health care system in several key ways:
- It is a sustainable, cost‐effective and creative way to make improvements in the health status of
each American
- It puts purchasing power back into the consumer’s hands
- It is a plan that covers nearly all American’s regardless of the funding source for their health care
dollars
-It equalizes access to health care services across demographic and income barriers
- It is built on the American ideals of self‐responsibility, equality and reward for hard work
This document discusses stress management and provides tips for reducing stress. It notes that some stress is normal but chronic stress can lead to health issues like anxiety, depression, heart disease and more. It then lists 7 tips for managing daily stress, which include journaling stressors, limiting technology use, learning to say no, scheduling relaxation, avoiding drugs/caffeine, practicing mindfulness, and exercising. The document emphasizes making health a priority and avoiding regrets about not taking care of one's health or relationships.
The document summarizes a health seminar that discusses body composition analysis, obesity risks, ideal nutrition, and Herbalife products. It promotes Herbalife meal replacements for breakfast that provide protein, vitamins, and minerals to replace 1-2 meals per day at 200 calories. Clinical studies show their products help reduce weight, body fat percentage, and improve blood parameters. Testimonials from customers report weight loss success stories losing 10-60 pounds using Herbalife products and nutrition plans.
This document discusses how emojis, emoticons, and text speak can be used to teach students. It provides background on the origins of emoticons in 1982 as ways to convey tone and feelings in text communications. It then suggests that with text speak and emojis, students can translate, decode, summarize, play with language, and add emotion to language. A number of websites and apps that can be used for emoji-related activities, lessons, and discussions are also listed.
CAPTURING TAX OPPORTUNITIES WITHIN THE FINAL TANGIBLE PROPERTY REGULATIONSCBIZ, Inc.
The tangible property regulations (TPRs) are the most dramatic changes in tax law to affect businesses since the overhaul of the Internal Revenue Code in 1986. The TPRs apply to all forms of business, whether a "C" corporation, an "S" corporation, a partnership, an LLC, a sole proprietorship (Schedule C on individual return), or a rental (Schedule E on individual return).
The facts and circumstances of each business situation should be carefully evaluated to determine the proper treatment of all business expenditures for materials and supplies, repairs and maintenance, and asset purchases along with the impact on subsequent depreciation. Needless to say, these regulations are quite complex and require timely attention.
The document discusses Indian accounting standards, including the meaning and benefits of accounting standards. It provides details on several specific accounting standards such as AS1 on disclosure of accounting policies, AS6 on depreciation accounting, AS9 on revenue recognition, and AS10 on accounting for fixed assets. The standards cover topics such as selection and disclosure of accounting policies, methods of depreciation, timing of revenue recognition, calculation of costs of fixed assets, and revaluation of fixed assets. The overall objective of the accounting standards is to standardize different accounting policies and practices in India.
On September 13, 2013, the IRS and Treasury Department released final regulations relating to the deduction and capitalization of expenditures related to tangible property. These once informal regulations have now been formalized providing increased guidance and rules surrounding repairs and maintenance on tangible property. The regulations affect businesses of all types and sizes, ranging from Fortune 500 companies to small businesses reported on individual tax payer's Schedule C. Compliance with the regulations will challenge every business, especially in light of a January 1, 2014 effective date.
This presentation discusses the nuts and bolts of staying in compliance with IRS repair and maintenance regulations.
Accounting provides economic information to support business decisions. The three main financial statements are the income statement, balance sheet, and cash flow statement. The balance sheet presents assets, liabilities, and owner's equity on a given date to show the resources and how they are financed. Key assets include fixed assets, current assets, and inventory. The income statement matches revenues and expenses over a period to determine profit or loss.
PPE refers to tangible items held for use in production or supply of goods and services with an expected useful life of more than one year. The standard outlines the accounting treatment for PPE, including initial recognition at cost, subsequent measurement using either the cost or revaluation model, depreciation, and derecognition. It also provides disclosure requirements such as the measurement basis, depreciation methods used, carrying amounts, and details related to revalued assets.
The document provides a summary of key aspects of various Indian Accounting Standards (Ind AS). It discusses the objectives, requirements and differences compared to previous Indian GAAP/ IFRS of various Ind AS like Ind AS 1 on presentation of financial statements, Ind AS 2 on inventories, Ind AS 7 on statement of cash flows, Ind AS 8 on accounting policies etc. For each Ind AS, it highlights important principles, disclosure requirements, and carve outs or differences between Ind AS and corresponding IFRS.
This document summarizes Accounting Standard 6 on depreciation accounting in India. It defines depreciation and outlines the key aspects of depreciation accounting such as depreciable assets, useful life, methods of calculating depreciation, and changes in depreciation rates. The standard provides guidance on determining depreciable amounts, selecting depreciation methods, calculating depreciation on additions/extensions, and disclosure requirements for depreciation in financial statements.
Accounting standards notes Dr. V M TidakeVishal Tidake
The document discusses Indian Accounting Standards (AS) as issued by the Institute of Chartered Accountants of India (ICAI). It provides definitions and explanations of key terms like accounting standards, accounting policies, revenue recognition, accounting for fixed assets, and depreciation accounting. Some of the main points covered include that accounting standards aim to standardize accounting policies and practices, the Accounting Standards Board of ICAI prepares the standards, and there are currently 32 accounting standards in India. The document also provides details on the objectives, disclosure requirements, and treatment of certain items under some major accounting standards like AS 1 on accounting policies, AS 6 on depreciation, AS 9 on revenue recognition, and AS 10 on fixed assets.
This document provides information about accounting for fixed assets and depreciation. It defines depreciation as a measure of the wearing out of an asset's value from use over time. Depreciable assets must be used for more than one period and have a limited useful life. Depreciation is calculated based on the historical cost, useful life, and estimated residual value of an asset. Common depreciation methods include straight-line and declining balance. The document also compares depreciation standards between AS-6, GAAP, and IAS-16.
The document discusses key concepts regarding property, plant, and equipment (PPE) accounting. It defines PPE as long-term tangible assets used in operations to generate revenue. The cost of PPE includes purchase price and expenditures to prepare the asset for use. Interest incurred during construction may be capitalized. PPE is depreciated over its useful life to allocate cost against profits. The document provides examples of costs included in PPE for land, buildings, and equipment.
The document summarizes key points from a presentation on accounting and tax updates. It discusses opportunities and compliance requirements related to the new Tangible Property Regulations, including the ability to deduct previously capitalized repairs and make partial disposition elections. It also provides an overview of state budget balances and revenues in Kansas and Missouri.
Dodd-Frank Executive Compensation Update – Rounding the Final Turn? Winston & Strawn LLP
As the fifth birthday of the Dodd-Frank Act fades into history, we are still awaiting rules from four of its main executive compensation provisions to be finalized. Proposed rules have been issued for all four (clawbacks, pay ratio, hedging, and pay for performance), and final rules are rumored for at least one in the very near future. Meanwhile, congressional pressure increases for the SEC to issue its final rules.
Winston & Strawn partners Scott Landau and Erik Lundgren from our executive compensation and employee benefits practice gave a practical, interactive presentation that reviewed the status of each of the “Last Four” requirements, compliance challenges facing companies, and strategies and action items for addressing the requirements and their uncertain timing.
The document summarizes important direct tax proposals in India. Some key points include:
- No changes proposed to individual tax slabs, thresholds, or surcharges but a new 4% health and education cess is introduced.
- Standard deduction of Rs. 40,000 for salaried individuals and increased deductions for senior citizens for health insurance and medical treatments.
- Changes to capital gains tax provisions including the removal of long-term capital gains tax exemption and a new provision to calculate tax on long-term capital gains from listed shares.
- Corporate tax rate reduced to 25% for companies with turnover up to Rs. 250 crores.
Chapter 1 Accounting for Income Tax.pptxSewaleAbate1
This document discusses accounting for income taxes. It explains that temporary differences between accounting income and taxable income create deferred tax assets or liabilities. Temporary differences arise from items that are taxable/deductible in different periods for accounting versus tax purposes. Permanent differences do not create deferred taxes as they only impact the current period. The document provides examples of common temporary and permanent differences that companies must consider when accounting for income taxes.
This document provides an overview of cashflow, trade working capital, debt, and risk management for short, medium, and long-term forecasts. It discusses the methodology for short-term cashflow forecasts updated weekly, medium-term forecasts covering 12-24 months, and long-term strategic forecasts covering 3-5 years. The document also covers improving cashflow and trade working capital through metrics, activities, and systems. It discusses active balance sheet management including debt ratios, interest rates, and maturities as well as risk management.
Final Regulations Governing Repairs & CapitalizationFreed Maxick CPAs
The IRS has released much-anticipated final “repair” regulations (T.D. 9636) governing when taxpayers must capitalize and when they can deduct their expenses for acquiring, maintaining, repairing and replacing tangible property. The final regulations make significant taxpayer-friendly changes to the 2011 temporary regulations. Compliance with the labyrinth of rules in the final regs, however, will challenge virtually every business, especially in light of an approaching January 1, 2014 effective date.
Learn more about the repair regulations and how it impacts by you by contacting Freed Maxick CPAs - Buffalo Rochester Batavia NY
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This document summarizes a revised exposure draft on lease accounting from the IASB and FASB. The draft proposes changes to improve transparency and comparability around lease accounting. For leases over 12 months, entities will recognize assets and liabilities for the rights and obligations conveyed by the lease. It outlines a "right of use" model requiring lessees to recognize assets and liabilities for the right to use leased assets and future lease payments. It also discusses classification of leases, measurement of assets and liabilities, subsequent accounting, disclosure requirements, and the potential impact on businesses.
If any of the above conditions is not satisfied, PPE cannot be recorded.
Above recognition, the principle is to be applied to the ‘Initial’ recognition of PPE and
‘Subsequent’ recognition.
Similar to Temporary Repairs Regulations (Section 263(a)) (20)
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Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Every business, big or small, deals with outgoing payments. Whether it’s to suppliers for inventory, to employees for salaries, or to vendors for services rendered, keeping track of these expenses is crucial. This is where payment vouchers come in – the unsung heroes of the accounting world.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
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Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
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2. 2013 Datawise Design, Inc. – Temporary Repairs Regulations (Section 263(a))
Notice: This document was not intended or wriFen to be used, and it cannot be used, for
the purpose of avoiding U.S. federal, state or local tax penalties.
Overview Contents
• Notice 2012-73 delays effective date of
Temporary Regulations effective for taxable
years beginning on of after Jan. 1, 2014
• IRS will modify portions of Temp Regs related
to De Mininis amounts, Dispositions, and
Routine Maintenance Safe Harbor in 2013
• Rev Proc 2012-19 (M&S, Capital
Expenditures, Transaction Costs, and
Improvements) and 2012-20 (Leased
Property, GAA, MACRS Property,
Dispositions of MACRS Property) provide
guidance including Sec 481(a) method
changes
• Rev Proc 2012-20 permits late-GAA election
for property placed in service prior to 2012
by filing Form 3115 within first two tax years
beginning on or after Jan. 1, 2012 and
Taxpayers should consider to timely elect
GAA treatment for assets placed in service
in 2012 on Form 4562 to take advantage of
favorable disposition rules, especially for
real property
• Material, Supplies, and
Rotable Spare Parts
o Define M&S as Tangible Personal
Property
• De Minimis Rule
o Capitalization Threshold
• Amounts Paid to Improve
Tangible Property
o Routine Maintenance Safe
Harbor
o Define Unit of Property
o Improvement Standards
• Dispositions and General
Asset Account Election
2
3. Materials, Supplies and
Rotable Spare Parts
• Materials and Supplies (Temp. Reg. Sec. 1.162-3T)
• Temp Regs follow existing, pre-Jan 1, 2012 law for non-
incidental and incidental M&S
• Non-incidental M&S (deducted in year used or
consumed)
• Incidental M&S (expensed in the year acquired; TP does
not maintain a record of consumption or take physical
inventories at year end)
• Clarify and expand definition of M&S, eliminate the
requirement that such property not be a Unit of Property
(UoP, i.e., can be a larger, separate component),
provide an optional, alternative method of accounting
(election) for rotable and temporary spare parts, and
provide an annual election to treat (each) certain M&S
under the De Minimus Rule, i.e., deduct currently
3
4. Materials, Supplies and
Rotable Spare Parts
• Define M&S as tangible personal property (other than
inventory) used or consumed in a TP’s operations that
meets the following criteria:
o A component acquired to maintain, repair, or improve a unit of tangible
property owned, leased, or serviced by the TP and that is not acquired as part
of any single unit of tangible property (includes rotable and temporary spare
parts);
o Fuels, lubricants, water, and similar items reasonably expected to be consumed
in 12 months or less beginning when used in a TP’s operations (new category);
o A UoP that has an economic useful life of 12 months or less;
o A UoP with an acquisition or production cost of $100 or less; or
o Property identified in future published guidance.
• A TP may elect annually to capitalize and depreciate
each M&S. A TP makes such election on a timely filed
original federal income tax return, including extensions,
for the tax year the asset is placed in service
4
5. Materials, Supplies and
Rotable Spare Parts
• Rotable and Temporary Spare Parts (Temp. Reg. Sec. 1.162-3T)
• RSP are defined as M&S that are acquired for installation on a
UoP, removable from that UoP, generally repaired or improved,
and either reinstalled on the same or other property or stored
for later installation
• TSP are M&S that are used temporarily until a new or repaired
part can be installed and then are removed and stored for
later (emergency or temporary) installation
• Temp Regs provide 3 methods for treating costs for RSP and
TSP: 1) deduct when used or consumed, (i.e., in the year when
disposed of, default), 2) elect to capitalize and depreciate
over the applicable recovery period, or 3) elect an optional,
alternative method
• The TP must use 1 of the 3 (same) methods for all RSP and TSP
in the same trade or business
5
6. Materials, Supplies and
Rotable Spare Parts
• Under the optional method, the TP deducts its basis in
RSP and/or TSP in the year it is placed in service,
recognizes income Fair Market Value (FMV) when the
part is removed, capitalizes costs to fix the part, and
then claims a deduction for such basis when the part is
once again placed in service:
o Deduct the cost to produce or acquire the part when the part is first installed,
o Recognize in gross income the FMV of the part when removed from the UoP,
and include the FMV and cost to remove the part in the basis of the part,
o Add to the basis of the part any amount paid to repair, maintain, or improve
the part,
o Deduct the cost of reinstallation and basis not previously deducted in the tax
year in which the part is reinstalled, and
o Deduct any remaining amount of basis in the part in the tax year in which it is
disposed of.
6
7. De Minimis Rule
• De Minimis Rule or “Capitalization Threshold” related to
amounts paid to acquire or produce tangible property
(Temp. Reg. Sec. 1.263(a)-2T(g))
• Temp Regs permit a TP to deduct certain expenditures
that have a useful life greater than 12 months consistent
with their treatment on their Applicable Financial
Statement (AFS) subject to a ceiling
• De Minimis Rule can be applied by a TP who meets all of
the following criteria:
o AFS filed with Securities and Exchange Commission (SEC); or
o Audited financial statement by an independent CPA that is used for creditors
or other non-tax purpose; or
o Financial statement other than a tax return required to be provided to an
agency of the federal or state government other than the IRS or SEC; and
o Written financial accounting policy in place at the beginning of the tax year to
deduct a certain dollar threshold and expense amounts on its AFS (non-tax
purpose) consistent with the written policy.
7
8. De Minimis Rule
• The amounts are treated as an expense on the AFS; and
• The ceiling amount (i.e., the maximum deduction under the
De Minimis Rule) is equal to the greater of:
o 0.1% of federal income tax reported gross receipts for the tax year, or
o 2% of the TP’s total book depreciation and amortization expense for the tax
year reported on its AFS.
• Temp Regs De Minimis Rule is available only to TP’s with an
AFS; otherwise, will not qualify for the De Minimis Rule
• The ceiling amount is not meant to be a “hard cap”; meaning
that TP’s seeking a deduction for amounts in excess of the
ceiling amount allowed by the De Minimis Rule may be
mitigated by a written agreement between examiners and TP
if certain amounts in excess are immaterial, provided such
agreements clearly reflect income
• TP may elect to capitalize amounts expensed under its AFS
capitalization threshold to allow it to deduct the ceiling
amount
8
9. De Minimis Rule
• De Minimis Rule cannot be used for inventory or for land costs
• Amounts deducted as M&S are not included in the ceiling
computation unless the TP elects by simply deducting the
amounts of any M&S in the tax year in which the amounts are
paid
• TP can elect not to apply the De Mininis Rule to any UoP
acquired during the year simply by capitalizing the amounts
on its timely filed federal income tax return
• Determination of whether the TP has an AFS and a written
policy to expense amounts below a certain threshold can be
made at the consolidated group level
• Determination and application of the ceiling amount is made
separately for each consolidated group member
• Lack of book and tax conformity will cause TPs to track the
total cost of newly acquired assets that have been expensed
during the tax year for financial statement purposes
9
10. Amounts Paid to Improve
Tangible Property
• Temp Regs generally provide that amounts paid to
improve a UoP (real or tangible personal) must to
capitalized, if UoP results in:
o A betterment of the UoP;
o A restoration of the UoP; or
o An adaptation of the UoP to a new or different use.
• Under the Routine Maintenance Safe Harbor, recurring
maintenance activities on a UoP (other than a building
or a structural component of a building) expected to
occur more than once during the ADS (Alternative
Depreciation System) class life of the UoP, as a result of
normal wear and tear (use) to “keep” the UoP in its
ordinary efficient operating condition as currently
deductible, i.e., otherwise capitalized as a restoration or
replacement of a major component of a UoP
10
11. Amounts Paid to Improve
Tangible Property
• Routine maintenance includes inspecting, cleaning and
testing a UoP and replacing parts with comparable and
reasonable replacement parts
• Factors to be considered in determining whether a TP is
performing routine maintenance are the recurring
nature of the activity, industry practice, manufacturer’s
recommendations, the TP’s experience and treatment of
the activity on its AFS
• An activity is not considered routine and recurring if it
results in a betterment or adaptation, is performed on
property where a TP has taken into account the
adjusted basis on the property, e.g. by claiming a loss, or
if the property is in a state of nonfunctional disrepair prior
to the expenditure
11
12. Amounts Paid to Improve
Tangible Property
• Temp Regs define UoP as consisting of all components that
are functionally interdependent, where placing one
component in service is dependent on placing another
component in service
• Special UoP rules are provided for buildings and structural
components, plant property, network assets, and leased
property
• Temp Regs provide that a component must be treated as a
separate UoP, if that component is property treated as being
within a different MACRS class (under IRC Sec 168(e)) than the
class of the larger UoP, or has been properly depreciated
using a different depreciation method (depreciation
consistency rule)
• MACRS consistency rule applies if a TP or IRS changes the
MACRS class or depreciation method for any type of property
during the placed in service year of the asset and in future
years, e.g. if a TP completes a cost segregation study
12
13. Amounts Paid to Improve
Tangible Property
• Temp Regs define a building and its structural components as
a single UoP, but require that the improvement standards be
applied separately to the building structure and specifically
defined 8 building systems:
o Building Structure;
o HVAC System;
o Plumbing System;
o Electrical System;
o Conveyance Systems (Escalators, Elevators);
o Fire Protection and Alarm Systems, i.e., Fire, Life & Safety Systems;
o Security Systems;
o Gas Distribution Systems (practically lump-sum with Plumbing System); and
o Other structural components or systems identified in published guidance, e.g. Land
Improvements.
• Under 2008 Regs, a building and and its structural components
were a single UoP for an entire building; which will now likely
result in additional capitalizable improvements on prior-year
repair expenditures and may necessitate a Sec 481(a)
method change
13
14. Amounts Paid to Improve
Tangible Property
• Plant property is functionally interdependent machinery or
equipment and is generally comprised of each component or group
of components used to perform an industrial process, e.g.
manufacturing, power generation, warehousing, distribution,
automated materials handling, etc.
• Temp Regs further divide functionally interdependent plant property
into smaller UoPs based on components or groups of components
that perform a discrete and major function or operation
• The discrete and major function standard often results in a smaller
UoP especially with assembly-line or continuous processes; which will
now likely result in a Sec 481(a) method change where prior-year
repair expenditures compared the entire production line as a single
UoP
• Temp Regs provide that the UoP for network assets is determined by
the TP’s particular facts and circumstances or typically in published
guidance, e.g. Rev Proc 2011-27 for wireline network assets, Rev Proc
2011-28 for wireless network assets, and Rev Proc 2011-43 for electric
transmission and distribution property, TBD natural gas, cable TV,
electric generation assets
14
15. Amounts Paid to Improve
Tangible Property
• Leased (real or tangible personal) property other than leased
buildings, follow the general rules for property other than buildings
including the functional interdependence test and plant property
rules for discrete and major function except that the UoP may not be
larger than the unit of leased property (property subject to lease)
• UoP for leasehold improvements for a lessor are included within the
same UoP (added to) as the UoP (building and components) being
improved
• UoP for leasehold improvements for a lessee are separate from the
leased portion of each building and its components; however, the
cost of further improving the lessee improvements (2nd generation)
are the same (added to) as the original leasehold improvements
• After determining the correct UoP, the next step is to access whether
the expenditure is an improvement to the UoP requiring
capitalization, i.e., betterment, restoration or adaptation of the UoP
to a new or different use
15
16. Amounts Paid to Improve
Tangible Property
• An amount paid results in a betterment of a UoP if it:
o Corrects a material condition or defect that was pre-existing or arose during
the production of the UoP, whether the TP was aware of the condition or
defect at the time of acquisition or production,
o Results in a material addition (including a physical enlargement, expansion, or
extension) to the UoP, or
o Results in a material increase in capacity (volume or area), productivity,
efficiency, strength, quality or output of the UoP.
• The betterment standard is highly factual and requires TP’s to compare
the cost of the repair against the UoP to determine whether an amount
paid results in a betterment to that UoP
• If an event necessitates the expenditure, compare the property
immediately before and after the spend; if normal wear and tear,
compare the property after current spend with property after the most
recent prior spend
• Temp Regs require the TP to take into account the purpose of the
expenditure, the physical nature of the of the worked performed, the
effect of the expenditure on the UOP, and the TP’s treatment of the
expenditure on its AFS 16
17. Amounts Paid to Improve
Tangible Property
• Basis recovery on the disposition of property is a critical component
of the restoration improvement standard; capitalizable restorations
include an otherwise deductible repair when the TP recovers the
adjusted basis on the disposition of a replaced component or part
• Capitalization of amounts paid to restore a UoP include:
o Replacing a component of a UoP if the TP has property deducted a loss for
that component (other than a casualty loss under Reg Sec 1.165-7);
o Replacing a component of a UoP if the TP has properly taken unto account
the adjusted basis of the component in realizing gain or loss from the sale or
exchange of the component;
o Repairing damage to a UoP for which the TP has property taken a basis
adjustment as a result of a casualty loss under Sec 165, or relating to a casualty
event described in Sec 165;
o Returning a property to its ordinarily efficient operating condition from a state
of nonfunctional disrepair;
o Rebuilding the property to a like-new condition after the end of its class life; or
o Replacing a major component or substantial structural part of a UoP, e.g. large
portion of the physical structure and/or performs a discrete and critical
function in operation of UoP.
17
18. Amounts Paid to Improve
Tangible Property
• Temp Regs eliminate the 50% bright-line measurement under
2008 Regs that allowed a TP to deduct an expenditure to
restore property if less than 50% of the structure was replaced
or less than 50% of the value of the unit of property was
replaced in favor of a facts and circumstances approach
• TP’s must capitalize amounts paid to adapt a UoP to a new or
different use if the adaptation is not consistent with the TP’s
intended , ordinary use of the UoP at the time originally
placed in service by the TP
• Temp Regs provide that in the case of a building, an amount
paid to adapt the UoP to a new or different use include any of
the properties listed in the Regs, i.e., buildings, condominiums,
cooperatives, or leased buildings
18
19. Dispositions and General
Asset Account Election
• Temp Regs provide that the retirement of a structural component
of a building is a disposition of MACRS property; heretofore, there
was only relief for tangible personal property or land
improvements
• The new disposition rules work with the new restoration rules,
where a TP generally recovers the basis of the disposed
component, but must capitalize repair costs
• Temp Regs modified the General Asset Account (GAA) rules
which allows TP’s to group property placed in service the same
year with the same asset life, recovery method, and averaging
convention
• GAA election provides a TP the flexibility to forgo the basis
recovery on the disposition and currently deduct the
replacement costs as a repair
• GAA election is made by checking the box on Form 4562 in the
year the assets are placed in service (line 18 of the 2011 Form
4562); the TP is required to keep records that indicate which
assets are in each GAA
19