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Third Quarter 2020 Accounting & Assurance Update

Alert | Sep 16, 2020
More About | Audit, Reviews & Compilations | Assurance | Risk & Regulatory

GrowthCast Episode 34: Virtual Inventory Observations

Partner, Gareth Montague-Smith discusses the challenges that COVID-19 has had on physical inventory observations and provides examples of virtual inventory audit methods and the associated complexities.

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SBA Releases Interim Final Rule Regarding Rent and Nonpayroll Costs

Alert | Aug 25, 2020
More About | Assurance | Tax | Risk & Regulatory

On Aug. 24, 2020, the U.S. Small Business Administration (SBA) released a new Payroll Protection Program (PPP) Interim Final Rule (IFR) regarding Treatment of Owners and Forgiveness of Certain Nonpayroll Costs. Discussion below highlights the key points from this IFR.

SBA Forgiveness Process for Lenders

On July 23, 2020, the Small Business Administration (SBA) released a procedural notice to all Lenders involved with the Paycheck Protection Program (PPP) detailing “the processes for submitting decisions on PPP borrower loan forgiveness applications to SBA, requesting payments of the forgiveness amount determined by the Lender, SBA loan forgiveness reviews and payment of the loan forgiveness amount determined by the SBA.”

GrowthCast Episode 27: Valuation Considerations for Evaluating Goodwill Impairments

Join Brian Steen, a principal in our valuation practice, as he summarizes considerations for management to meet the valuation requirements of a goodwill impairment test, both qualitatively and quantitatively.

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GrowthCast Episode 26: Triggering Events for Interim Goodwill Impairment Evaluation

Join Gareth Montague-Smith as he discusses goodwill impairment, the possibility entities experiencing multiple triggering events as a result of COVID-19 and the importance of discussions with your external auditors during this time.

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Considerations Checklist for PPP Forgiveness Calculation

As you approach the end of your covered period and are starting to perform calculations and gather documents for your application, there are a handful of considerations you may want to take into account. Our PPP Task Force team has prepared this checklist of items for you to consider prior to submission of your PPP Loan forgiveness application

Nine Ways Audit Committees Can Add Value Towards Emerging Strong

The COVID-19 pandemic brings new challenges to many companies, ranging from financial reporting and the ability to meet filing deadlines, to the execution of work-from-home plans. With the uncertainty of the immediate future, and with large percentages of the workforce either working from home or considering some phase of reopening, audit committees will need to discuss items that were most likely not included on their pre-COVID-19 agendas.

President Enacts PPP Application Deadline Extension

On July 4, President Donald Trump signed into law legislation extending the Paycheck Protection Program (PPP) application deadline from June 30, 2020 to August 8, 2020.

GrowthCast Episode 23: COVID-19 Impact on Financial Reporting Valuations

There's no doubt that COVID 19 has had and will continue to have a significant impact on the global economy. While it is anyone’s guess as to the depth and duration of that impact, it's important to remember that every situation is unique; the impact on companies and their assets' values will vary depending on industry, geographic location, and strategic response. Join Tanner Shaw as he discusses the impact that COVID-19 has had on financial reporting valuations.

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SBA Releases Two Additional Interim Final Rules on PPP

Recently, the Small Business Administration (SBA) released two new Interim Final Rules (IFRs) to modify previously issued guidance on the Paycheck Protection Program (PPP). On June 22, the SBA released IFR 20, Revisions to Loan Forgiveness Interim Final Rule (IFR 14) and SBA Loan Review Procedures Interim Final Rule (IFR 15). On June 24, the SBA released IFR 21, Additional Eligibility Revisions to First Interim Final Rule (IFR 1). Below is a summary of both IFRs.

Second Quarter 2020 Accounting & Assurance Update

Alert | Jun 26, 2020
More About | Audit, Reviews & Compilations | Assurance | Risk & Regulatory

Accounting for PPP Loans Under the CARES Act

In the immediate aftermath of the economic shutdown, small businesses across America struggled to make ends meet and were most concerned about liquidity and the survival of their business. Now that the initial shock has passed and the economy is beginning the process of reopening, many are asking questions regarding how loans under the Paycheck Protection Program (PPP) should be accounted for.

GrowthCast Episode 22: Tools to Help Retirees Navigate the Current Market

Podcast | Jun 25, 2020
More About | Assurance | COVID-19 | Wealth Management

Paul Harteg from DHG Wealth Advisors walks through a few strategies for retirees to keep a long-term perspective and first steps to consider during a period of stress in the stock market.

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Levels of Transparency Announced for Paycheck Protection Program Loans

On Friday, June 19, 2020, the U.S. Department of Treasury (Treasury), the U.S. Small Business Administration (SBA) and U.S. Senate Small Business Committee agreed on terms that will make specific Paycheck Protection Program (PPP) loan borrower information available to the public in order to provide transparency to taxpayers. Although the loan amount provided to each business will not be provided, each loan will be identified as falling within a bucket within the $150,000 to $10 million range.

PPP Forgiveness Application, Guidance and EZ Form Issued

The SBA released a revised PPP loan forgiveness application (Form 3508) to address changes recently made by the PPP Flexibility Act of 2020 (PPPFA). The SBA also issued an “EZ” version of the PPP loan forgiveness application (Form 3508EZ) to simplify the process for select borrowers. The new forms were accompanied by the SBA’s nineteenth interim final rule, making changes to prior IFRs to reflect the recent PPPFA forgiveness changes.

GrowthCast Episode 20: Lease Concession Considerations

When conserving cash flow is paramount, lease concessions can help provide some temporary relief. In this podcast episode, Rob Cherry walks through the financial reporting considerations when you are determining whether or not to request a lease concession.

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Treasury and SBA issue Joint Statement on PPP Flexibility Act

The Paycheck Protection Program Flexibility Act of 2020 was signed into law President Trump on June 5, 2020. Following the passage of the Act, the SBA and U.S. Department of the Treasury issued a joint statement issuing rules and guidance on implementing the Flexibility Act.

Private Company Financial Reporting Matters

Publication | Jun 05, 2020
More About | Assurance | Revenue Recognition | COVID-19

Very few people could have anticipated that COVID-19, which we heard about in late December and early January, would impact our lives and economy to the degree that we are currently experiencing. With significant economic uncertainty arising as private companies are in the midst of their ongoing financial reporting process, many questions and considerations are at the forefront of COVID-19’s impact on a company’s financial statements and related footnote disclosures, not only for those companies who have yet to issue their fiscal year-end 2019 financial statements, but going forward into 2020.

FASB Issues Delay to Effective Dates of ASC 606 and ASC 842 for Private Companies and Not-For-Profit Entities

On Wednesday, June 3, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities.

Senate Passes Paycheck Protection Program Flexibility Act of 2020

On June 3, 2020, the U.S. Senate passed the Paycheck Protection Program Flexibility Act of 2020. The bill had previously passed the U.S. House of Representatives on May 28, 2020. The bill will need to be signed by President Trump in order to become enacted.v

Lease Standard: Impact on Tech and Life Sciences Companies

By delaying the effective date for non-public business entities, FASB has created an opportunity for technology and life sciences companies to fully consider the impact of ASC 842 and prepare for the upcoming transition.

Grant Compliance Begins with Board Oversight

Publication | Jun 03, 2020
More About | Not-for-Profit | Assurance | COVID-19

The role of the board of directors is vital to ensuring that organizations are using resources effectively, taking on projects it has the resources to handle and fulfilling both its mission and compliance requirements. A knowledgeable, engaged and effective board can be the difference in whether or a not an organization receives or keeps grant funding.

Best Practices for Dealership Month-End Close

Publication | May 29, 2020
More About | Dealerships | Assurance | Performance & Growth

The primary reason that most dealers want a timely financial close is so they can have access to accurate financial data in order to measure performance. With a rapidly changing economy and consumer buying habits, it is imperative that management have timely financial data to adjust business plans and strategies to capture all opportunities.

New Interim Final Rule 15 Provides Guidance for PPP Loan Forgiveness Process

On May 22, 2020, the U.S. Department of the Treasury and the Small Business Administration issued a new Interim Final Rule (IFR 15) related to the SBA’s loan forgiveness review process and the Paycheck Protection Program. IFR 15 provides lenders and borrowers with insight on the process and timeline that the SBA will work with for PPP loan forgiveness.

New Interim Final Rule 14 Provides Clarity on PPP Loan Forgiveness Application

On May 22, 2020, the U.S. Department of the Treasury and the Small Business Administration issued a new Interim Final Rule (IFR 14) related to loan forgiveness and the Paycheck Protection Program (PPP). FR 14 outlines the general process for forgiveness and provides guidance to help borrowers “take immediate steps to maximize their loan forgiveness amounts.

COVID-19 and the Sequence of Asset Impairment Testing

As businesses consider the financial reporting impacts of COVID-19 and whether assets are impaired, they will need to carefully consider the rules regarding the sequence in which impairment testing is to be performed.

Goodwill Impairment Testing Considerations During COVID-19

Given the recent impact of COVID-19 on the economy, unemployment and daily operations, the discussion of potential goodwill impairment (and related testing thereof) has become a hot topic for many entities across all industries. Accounting Standards Codification (ASC) 350, Intangibles – Goodwill and Other (ASC 350), states that entities must evaluate their goodwill for impairment at least annually; however, during interim periods (for those reporting interim results), a goodwill impairment analysis could be necessary if the entity has an indication that the fair value of a reporting unit has fallen below its carrying value, a condition defined by the guidance as a triggering event. Understanding what constitutes a triggering event is an important consideration even for those following the Private Company Council accounting alternative who are not required to assess goodwill for impairment annually, rather only when a triggering event occurs. Determining whether a triggering event occurred for those entities who had an interim reporting date at March 31, 2020, was a significant undertaking for many and may continue to be for financial reporting dates occurring in the foreseeable future with continued market uncertainty.

FASB Votes to Delay Effective Date of ASC 606 and ASC 842 for Private Companies and Not-For-Profit Entities

On Wednesday, May 20, the Financial Accounting Standards Board (FASB) met virtually to discuss comment letter feedback on the proposed Accounting Standards Update (ASU), Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities.

ASB Delays a Suite of Standards Resulting from COVID-19 Challenges

The Auditing Standards Board (ASB) has issued Statement on Auditing Standards (SAS) No. 141, Amendment to the Effective Dates of SAS Nos. 134-140 in an effort to provide relief to audit firms as a result of challenges created by the COVID-19 pandemic. The effective dates for a suite of standards have been delayed one year from audits of financial statements for periods ending on or after Dec. 15, 2020, to audits of financial statements for periods ending on or after Dec. 15, 2021. Previously, early implementation was not permitted, but under SAS No. 141, early adoption is no longer prohibited. The AICPA recommends that the below suite of standards be implemented together as SAS Nos.134-140, which address substantial changes to the auditor’s report and have interrelated amendments. This new statement is effective upon issuance.

SBA Issues Loan Forgiveness Application and Instructions for Borrowers

Alert | May 18, 2020
More About | Assurance | Tax | Risk & Regulatory

On May 15, 2020, the U.S. Department of the Treasury (the Treasury) and the Small Business Administration (SBA) issued the Paycheck Protection Program (PPP) – Loan Forgiveness Application and Instructions for Borrowers (the Forgiveness Application), which provides clarity of several topics relevant to PPP loan forgiveness and provides a PPP Loan Forgiveness Calculation Form, along with supporting schedules and worksheets. The following summarizes some of the more significant clarifications to previously issued PPP guidance within the Forgiveness Application:

Financial Statement Audits in the Post COVID-19 World

Financial statement audits will certainly look and feel different for healthcare providers in 2020 and potentially beyond in the post COVID-19 world. While audits may seem far off, critical actions taken now will determine this key piece of an organization’s success.

FAQ #47 Extends Repayment Date for PPP Certification Safe Harbor

On May 13, 2020, the U.S. Department of the Treasury (the Treasury) and the Small Business Administration (SBA) issued Frequently Asked Question (FAQ) #47 related to Paycheck Protection Program (PPP) and the safe harbor connected to the loan necessity certification.

FAQ #46 Addresses PPP Good Faith Certifications

On May 13, 2020, the U.S. Department of the Treasury (the Treasury) and the Small Business Administration (SBA) issued Frequently Asked Question (FAQ) #46 related to Paycheck Protection Program (PPP) certifications. FAQ #46 provides additional guidance on how the SBA will review the required certifications on the PPP Borrower Application Form when determining whether they were made in good faith.

Economic Disruption – Considerations for Boards and Those Charged with Governance

COVID-19 crisis has caused uncertainty for boards and those charged with corporate oversight. Governance and communication, finance and operations, and compliance are a few of the activities impacted by the virus and the related restrictions. Boards lacking a robust strategy can risk prolonged economic distress, loss of jobs, loss of customers, and diminished capital. These are just some of the challenges, which must be overcome to emerge strong from the crisis.

Certifying Your PPP Loan

Alert | Apr 28, 2020
More About | Assurance | Tax | COVID-19

On April 23, 2020, the U.S. Department of the Treasury (the Treasury) and the Small Business Administration (SBA) issued guidance on the Paycheck Protection Program (PPP) – the SBA issued a supplemental interim rule, and the Treasury added Question #31 to its list of frequently asked questions associated with the PPP. This updated guidance comes on the heels of Treasury Secretary Mnuchin’s Coronavirus Task Force Briefing on April 21, 2020, where he stated that PPP loans were not intended for “big public companies that have access to capital,” vowing to “put an FAQ out and explain the certification” and that “there are severe consequences for people who don’t attest properly to this certification.”

Paycheck Protection Program and Health Care Enhancement Act Signed into Law

On April 24, 2020, President Trump signed the Paycheck Protection Program and Health Care Enhancement Act (Enhancement Act) which provides additional direct appropriations for the Paycheck Protection Program (PPP). The PPP was authorized on March 27, 2020, in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Under the CARES Act, the Small Business Administration (SBA) received funding and authority to establish the PPP to assist small businesses nationwide adversely impacted by the COVID-19 emergency. On April 16, 2020, the SBA announced that it had fully committed the $349 billion appropriated in the CARES Act for PPP loans and was no longer accepting new applications for the PPP.

Internal Controls over Financial Reporting (ICFR) and COVID-19

Public companies reporting on Internal Controls over Financial Reporting (ICFR) in their quarterly and annual financial statements must consider the impact of COVID-19 on their ICFR/Sarbanes-Oxley (SOX) functions.

Financial Reporting and the CARES Act

Publication | Apr 10, 2020
More About | Assurance | COVID-19

The COVID-19 pandemic has resulted in a widespread reduction in economic activity throughout the United States and the rest of the world. As the importance of social distancing has increased, nonessential businesses have been forced to close, substantially increasing economic uncertainty. With such widespread cessation of economic activity, businesses are struggling to pay employee salaries and benefits, rents, mortgages and a variety of other obligations. In addition, weekly unemployment claims have rapidly increased to their highest level in recorded history. In response to the economic impact of COVID-19, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted on March 27, 2020. The CARES Act includes a variety of relief provisions for businesses and individuals. The relief provided to businesses has raised several questions as to how to account for these benefits.

FASB Board Meeting Addresses Impact of COVID-19

Publication | Apr 08, 2020
More About | Assurance | COVID-19

On April 8, 2020, the Financial Accounting Standards Board (FASB) held a virtual board meeting to address and vote on concerns and considerations raised by its various stakeholders resulting from the extensive impact that the COVID-19 pandemic continues to have on business operations and the global economy. During the meeting, FASB staff addressed concerns specific to effective dates for ASC 606 and ASC 842 as well as technical inquiries received in recent days leading up to the board meeting.

GrowthCast Episode 03: Financial Reporting Considerations In Disruptive Times

Podcast | Apr 08, 2020
More About | Assurance | COVID-19

Host John Locke welcomes DHG Audit Innovation & Methodology partner Liz Gantnier to discuss financial reporting considerations during these disruptive times.

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First Quarter 2020 Accounting & Assurance Update

Alert | Apr 06, 2020
More About | Audit, Reviews & Compilations | Assurance | Risk & Regulatory

Economic Injury Disaster Loan (EIDL) Program FAQs

The recent CARES Act signed into law expanded the EIDL Program to provide relief related to COVID-19. DHG addresses the Economic Injury Disaster Loan (EIDL) Program below.

CARES Act Summary - Small Businesses: Choose Your Path

With the CARES Act being signed into law on March 27, 2020, the Small Business Association has provided further guidance on what this means for small businesses. DHG outlines the options and relief programs available as noted below.

NAIC Issues Exposure Draft for Extension of Ninety-Day Rule

Publication | Apr 03, 2020
More About | Insurance | Assurance | COVID-19

On March 11, 2020, the World Health Organization (WHO) declared the outbreak of Coronavirus Disease 2019 (COVID-19) a global pandemic. On March 13, 2020, the U.S. federal government declared a national emergency concerning the COVID-19 outbreak.

Paycheck Protection Program (PPP) Loans FAQs

FAQ’s – for Paycheck Protection Program (PPP) Loans

CARES Act Includes Provisions for Employee Benefit Plans

Publication | Apr 02, 2020
More About | Assurance | Employee Benefit Plan Audits | COVID-19

In the current economic environment, evaluation of the provisions available in employee benefit plans to provide relief to both participants and employers is an area for consideration for all businesses.

Income Tax Accounting (ASC 740) Implications of COVID-19

Even as companies grapple with the effects of the COVID-19 pandemic, many calendar year businesses are preparing to issue their first quarter earnings, and some fiscal year filers are preparing to issue their annual reports.

SEC Issues Additional Targeted Relief & Guidance

Publication | Mar 26, 2020
More About | Assurance | COVID-19

On March 25, 2020, the SEC issued a press release that extended its regulatory relief for certain public companies, investment funds and investment advisers whose operations may be affected by COVID-19. This Order, which supersedes the Commissions Original Orders of March 4, 2020 for public companies and March 13, 2020 for investment funds and advisers, grants extensions should entities not be able to meet original deadlines due to the effects COVID-19. The Division of Corporation Finance also issued related disclosure and other guidance.

Top Considerations for Allocating Indirect Costs

Publication | Mar 18, 2020
More About | Construction | Assurance | Performance & Growth

Appropriately managing indirect costs can be complex, yet it is essential in the construction industry, since cost allocation is key to understanding the true cost of any project. Cost allocation, when done appropriately, also provides insight to the profitability of individual projects. However, construction companies and contractors may find it challenging to determine optimum indirect cost allocations confidently and consistently. The following are some considerations and best practices for contractors regarding indirect costs and their allocation methodology, which can improve the financial foundation of their projects.

Considering the Effects of COVID-19 on Financial Reporting

The emergence of COVID-19 throughout the world has caught many businesses by surprise and highlights the importance of being prepared to respond to economic uncertainty. As we are reminded by daily headlines, the full economic impact has not been determined, and the situation remains fluid.

SEC Amends Accelerated and Large Accelerated Filer Definitions

Publication | Mar 16, 2020
More About | Assurance | Risk & Regulatory

On March 12, 2020, the Securities and Exchange Commission (SEC) adopted amendments to the accelerated filer and large accelerated filer definitions. When classified as an accelerated filer or large accelerated filer, an issuer is subject to, among other things, the requirement that its auditor attest to and report on management’s assessment of the effectiveness of the issuer’s internal control over financial reporting (ICFR).

Lease Standard – Impact to the Dealership Industry’s Key Metrics and Financial Covenants

In February 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU 2016-02) for Accounting Standards Codification (ASC) 842, Leases, that defines new principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. Under this new standard, a company is required to recognize most leases on its balance sheet, whether it was previously treated as a capital lease or an operating lease.

Master Trust Reporting for Employee Benefit Plans

Publication | Feb 26, 2020
More About | Assurance | Employee Benefit Plan Audits | Risk & Regulatory

The Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2017-06 on Feb. 27, 2017, which provides guidance on the disclosure of an employee benefit plan’s interest in a master trust. ASU 2017-06 became effective for fiscal years beginning after Dec. 15, 2018; since many employee benefit plans hold investments in master trusts, they are therefore subject to certain unique reporting requirements.

Final Regulations for Hardship Withdrawal Guidance – What Plan Sponsors Should Review That Impact 2020

Publication | Feb 26, 2020
More About | Assurance | Employee Benefit Plan Audits | Risk & Regulatory

The Internal Revenue Service (IRS) released final regulations regarding hardship withdrawals in September 2019. The final regulations implement the following changes affecting hardship withdrawals:

Impact of Lease Accounting Standard on Manufacturing, Distribution and Retail Companies

In February of 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02. This ASU, along with several subsequently issued yet related ASUs, is codified in Accounting Standards Codification (ASC) Topic 842, Leases, amending the accounting guidance for leases. On Nov. 15, 2019, the FASB announced a delay in the effective date of the ASU for non-public business entities, who are now required to apply ASU 2016-02 for reporting period beginning after Dec. 15, 2020.

FASB Releases ASU 2019-12 as Part of Simplification Initiative

On Dec. 18, 2019, the Financial Accounting Standards Board (FASB) released Accounting Standards Update (ASU) 2019-12, which affects general principles within Topic 740, Income Taxes. The amendments of ASU 2019-12 are meant to simplify and reduce the cost of accounting for income taxes. The FASB has stated that the ASU is being issued as part of its Simplification Initiative, which is meant to reduce complexity in accounting standards by improving certain areas of generally accepted accounting principles (GAAP) without compromising information provided to users of financial statements.

Fourth Quarter 2019 Accounting & Assurance Update

Alert | Dec 20, 2019
More About | Assurance | Risk & Regulatory

The developments included in this Accounting and Assurance (A&A) Update are intended to be a reminder of recently issued accounting and auditing standards and other guidance that may affect our clients in the current reporting period. This quarterly A&A Update is intended as general information and should not be relied upon as being definitive or allinclusive. Throughout the document we have also referenced other DHG A&A Updates and external publications, as applicable. Recent quarterly A&A Updates can be found under Assurance Alerts on the DHG Knowledge Share Hub.

A Contractor’s Guide to Documenting Revenue Recognition

Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, Topic 606, commonly referred to as ASC 606, became effective for private companies for fiscal years beginning on, or after, December 15, 2018.

DHG Expands in Washington Market

Charlotte, N.C., November 22, 2019 – Dixon Hughes Goodman LLP (DHG), a U.S. top 20 public accounting and advisory firm, is pleased to announce the professionals of RyanSharkey of Vienna, Virginia will join DHG effective December 1, 2019. RyanSharkey’s 50-person team adds strength to DHG’s assurance, tax and advisory service offerings in the Capital Market building upon DHG’s reputation for technical knowledge and industry intelligence

Where Is Your Financial Institution in the CECL Adoption Process - Top Five Takeaways from DHG’s CECL Roundtable.

On Sept. 5, 2019, DHG hosted a roundtable in Harrisburg, Pa., inviting representatives from several banks actively involved in the current expected credit loss (CECL) implementation process to discuss trending topics for the CECL standard.

Lease Accounting Standard Impact

Publication | Nov 18, 2019
More About | Government Contracting | Assurance | Lease Accounting

Government contractors, particularly those with significant operating lease activity under current lease accounting guidance, can take advantage of the delayed effective date of ASU 2016-02 to prepare for implementation.

The Impact of the Lease Accounting Standard on Construction Companies

Publication | Nov 18, 2019
More About | Construction | Assurance | Lease Accounting

On Nov. 15, 2019, the FASB announced a delay in the effective date of the ASU for non-public business entities, who are now required to apply ASU 2016-02 for reporting periods beginning after Dec. 15, 2020.

FASB Finalizes Effective Date Delays for Major Accounting Standards

Today, the Financial Accounting Standards Board (FASB) issued two Accounting Standards Updates (ASUs) that finalize various effective date delays for standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance contracts.

FASB Meets to Discuss Comments on Effective Date Extensions

Today, the Financial Accounting Standards Board (FASB) met to discuss comments received on the August 2019 proposed Accounting Standards Update (ASU) on effective dates for major projects.

Lease Accounting – Understanding the Implementation of GASB 87

GASB 87 has been a significant topic of conversation for many organizations, including adaptation and implementation of the single model for accounting and reporting. In this article, we cover the major changes required by the new standard as well as possible complexities that governments may face as they work toward compliance with the new lease standard.

DHG’s Comment Letter Response to FASB’s Proposed Effective Date Deferrals for CECL, Derivatives and Hedging, Leases, and Long-Duration Contracts

Dixon Hughes Goodman LLP (DHG) has responded to the Financial Accounting Standards Board’s (FASB) invitation to comment on its Exposure Drafts, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates and Financial Services—Insurance (Topic 944): Effective Date.

Third Quarter 2019 Accounting & Assurance Update

AICPA Releases SAS 136 to Confirm Performance Requirement Changes for ERISA Auditor Reporting

Alert | Jul 25, 2019
More About | Assurance | Employee Benefit Plan Audits | Risk & Regulatory

In July 2019, the American Institute of Certified Public Accountants (AICPA) Auditing Standards Board (ASB) issued the anticipated AICPA Statement on Auditing Standards No. 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA (EBP SAS). The EBP SAS addresses an auditor’s responsibility when forming an opinion and reporting on audits of financial statements of employee benefit plans subject to the Employee Retirement Income Security Act of 1974 (ERISA).

FASB Proposes Staggered Effective Dates for Major Accounting Standards

On July 17, the Financial Accounting Standards Board (FASB) met to reconsider its philosophy on establishing effective dates for major projects for private companies, not-for-profit organizations and smaller public companies, as well as to discuss the amendment of certain upcoming effective dates for existing major standards that are not yet effective.

Lease Accounting | Part 4: Determining the Lease Term

DHG TV | Jul 02, 2019
More About | Assurance | Lease Accounting

Determining the Lease Term for Lease Accounting (ASC Topic 842)

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Lease Accounting | Part 3: Lease and Non-lease Components and Determining the Discount Rate

DHG TV | Jul 02, 2019
More About | Assurance | Lease Accounting

Lease and Non-lease Components and Determining the Discount Rate for Lease Accounting (ASC Topic 842)

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Lease Accounting | Part 2: Transition Practical Expedients

DHG TV | Jul 02, 2019
More About | Assurance | Lease Accounting

Transition Practical Expedients for Lease Accounting (ASC Topic 842)

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Lease Accounting | Part 1: How to Get Started

DHG TV | Jul 02, 2019
More About | Assurance | Lease Accounting

How to Get Started with Lease Accounting (ASC Topic 842)

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Second Quarter 2019 Accounting & Assurance Update

Alert | Jun 24, 2019
More About | Assurance | Risk & Regulatory

Preparing for Your First 401(k) Audit

Publication | May 24, 2019
More About | Assurance | Employee Benefit Plan Audits | Risk & Regulatory

Employee benefit plans such as 401(k) plans are required by the Employee Retirement Income Security Act of 1974 (ERISA) to have an annual audit if there are 100 or more eligible participants at the beginning of the plan year. These audits provide information so the users are able to assess the plan’s financial condition and identify any operational errors or control weaknesses of the plan. Initial audits can seem overwhelming and present challenges for the plan sponsor; however, proper planning can help to alleviate the challenges. In this article we discuss how to best plan and alleviate stress that can accompany a first-time 401(k) plan audit.

First Quarter 2019 Accounting & Assurance Update

The developments included in this Accounting and Assurance Update are intended to be a reminder of recently issued accounting and auditing standards and other guidance that may affect our clients in the current reporting period.

Transition to ASC Topic 842, Leases

Publication | Apr 01, 2019
More About | Assurance | Lease Accounting

The purpose of this document is to illustrate a comprehensive example of how to transition from current GAAP (ASC 840) to the new lease accounting standard (ASC 842). This example uses a single lease example, rather than a portfolio of leases, to illustrate the accounting under current guidance, the transition entry to ASC 842, and go forward accounting for leases that existed at the effective date.

FASB Accounting Standards Update 2019-01 Provides Clarity on Certain Leasing Standard Implementation Issues

Publication | Mar 25, 2019
More About | Assurance | Lease Accounting | Risk & Regulatory

On March 5, 2019 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-01, Leases (Topic 842): Codification Improvements. The update includes amendments that address issues brought to FASB’s attention by stakeholders about implementation issues. The following points are addressed specifically in the update:

Leases: Not Just for the Footnotes Anymore

Publication | Jan 11, 2019
More About | Manufacturing & Distribution | Assurance | Lease Accounting

Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-02 Leases (Topic 842) is a new standard that will govern the accounting for lease contracts beginning with the 2019 c

Focused Highlights of the AICPA Conference on Current SEC & PCAOB Developments

Publication | Dec 21, 2018
More About | Assurance | Risk & Regulatory

The annual AICPA Conference on Current SEC and PCAOB Developments was held in Washington D.C. with a wide range of representatives from the Securities and Exchange Commission (SEC), Public Company Acc

New standard for ERISA benefit plan audits released by AICPA

Alert | Dec 20, 2018
More About | Assurance | Employee Benefit Plan Audits | Risk & Regulatory

Earlier this month, the American Institute of Certified Public Accountants (AICPA) Auditing Standards Board voted to issue the Statement on Auditing Standards Forming an Opinion and Reporting on Finan

Fourth Quarter 2018 Accounting & Assurance Update

The developments included in this Accounting and Assurance (A&A) Update are intended to be a reminder of recently issued accounting and auditing standards and other guidance that may affect our cl

The Wayfair Ruling’s Impact on Financial Reporting

In arguably the most important sales tax case in the past twenty-five years, the U.S. Supreme Court released its highly anticipated decision in South Dakota v. Wayfair, Inc. in June. In essence, the Wayfair decision eliminated the historical “physical presence” nexus standard for sales tax and effectively puts into place an “economic” nexus standard based on the amount of business a company does in a given jurisdiction. The court upheld South Dakota’s nexus statute, which defines doing business in the state as having greater than $100K in sales or 200 transactions in a year within the state.

Targeted Improvements to Related Party Guidance for Variable Interest Entities

On October 31, 2018, the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (“ASU”) No. 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities.

Practical Considerations for Private Companies on the Timing of Evaluating and Implementing ASC 606

Publication | Oct 23, 2018
More About | Assurance | Revenue Recognition | Performance & Growth

In today’s fast-paced and rapidly changing business environment, management teams are faced with challenging decisions on where to deploy limited resources.

Revenue Recognition: A Private Company Disclosure Guide

The Financial Accounting Standards Board issued Accounting Standards Codification (ASC) 606 - Revenue from Contracts with Customers in May 2014. The new standard becomes effective for private companies1 for fiscal years beginning after December 15, 2018 (i.e. calendar year 2019 for companies with a December 31st year end) and interim periods within fiscal years beginning after December 15, 2019 (i.e. first quarter 2020 for private companies with quarterly interim reporting requirements and a December 31st year end).

Third Quarter 2018 Accounting & Assurance Update

The developments included in this Accounting and Assurance (A&A) Update are intended to be a reminder of recently issued accounting and auditing standards and other guidance that may affect our cl

SEC Amends Smaller Reporting Company Thresholds

alert | Aug 07, 2018
More About | Assurance | Risk & Regulatory

S-K and S-X by amending the definition of smaller reporting company (SRC). These changes are effective September 10, 2018

Second Quarter 2018 Accounting & Assurance Update

The developments included in this Accounting and Assurance (A&A) Update are intended to be a reminder of recently issued accounting and auditing standards and other guidance that may affect our cl

DHG's Comment Letter Response to the AICPA's Proposed Changes to the Auditor's Report

| May 15, 2018
More About | Assurance | Risk & Regulatory

Dixon Hughes Goodman LLP (DHG) has responded to the Auditing Standards Board’s (ASB) Proposed Statements on Auditing Standards

First Quarter 2018 Accounting & Assurance Update

The developments included in this Accounting and Assurance (A&A) Update are intended to be a reminder of recently issued accounting and auditing standards and other guidance that may affect our cl

FASB Discusses Accounting Issues Arising from Tax Reform

On January 10, 2018, the Financial Accounting Standards Board (FASB) met in order to discuss various accounting issues arising from the Tax Cuts and Jobs Ac

First Quarter 2017 Accounting, Reporting and Auditing Developments

The developments included in this Accounting and Assurance (A&A) Update are intended to be a reminder of recently issued accounting and auditing standards and other guidance that may affect o

Targeted Improvements of the Accounting for Long-Duration Contracts

Publication | Mar 10, 2017
More About | Insurance | Assurance | Risk & Regulatory

The Financial Accounting Standards Board (FASB) issued a proposed Accounting Standards Update (ASU) on September 29, 2016 that is intended to improve financial reporting for insurance companies that issue long-duration contracts that are contained in ASC 944. Impacted companies would be those that issue long-duration contracts, including most life insurance and annuity products, disability income and long-term care insurance.

Common Pitfalls of Business Combination Accounting

With recent merger announcements of companies like Starwood and Marriott, or AT&T and Time Warner, the appetite for business acquisitions is clearly back in full swing.

Revenue Recognition: It’s Not Just About Revenue

| Oct 19, 2016
More About | Assurance | Revenue Recognition

Non-Revenue Issues to Keep in Mind for the Upcoming Standard ChangesIn 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts

DHG’s Response to the PCAOB’s "Supplemental Request for Comment: Rules to Require Disclosure of Certain Audit Participants on a New PCAOB Form"

Aug 31, 2015
More About | Assurance

Dixon Hughes Goodman LLP (DHG) has responded to the Public Company Accounting Oversight Board’s (PCAOB) Supplemental Request for Comment: Rules to Require Disclosure of Certain Audit Particip...

Accounting System Review - What’s a Contractor to Do?

| Feb 15, 2014
More About | Tysons, VA | Government Contracting | Assurance

Companies face many challenges while trying to grow in the government contracting marketplace.  Initially a company needs to identify a category of goods or services to provide and an agency that

What is Your Government Contract Company Worth?

Firm Blog | Jan 23, 2014
More About | Gaithersburg, MD | Government Contracting | Assurance

The first contract has grown to ten, two employees have multiplied to fifty and revenue conversations that once discussed thousands of dollars now contemplate hundreds of thousands or millions of d...

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