State and local governments grant tax credits and incentives to large corporations for choosing to setup shop in their cities. The lure of creating new jobs and boosting the local economy spells success for state and local government officials.
Blockchain for Economic Development Incentives
The worldwide marketplace for economic development incentives facilitates over $300 billion in transactions every year. However, these are not just free giveaways to a company. In exchange for an incentive package, a business is expected to create value for that community.
FASB Topic 832 Board Meeting
The Financial Accounting Standards Board (FASB) met on March 14, 2018 for the first time in 20 months to discuss Topic 832: Disclosures by Business Entities about Government Assistance. Given that so much time has passed between now and the last formal meeting and the Board turnover, the Board decided to make this an educational session where no formal decisions would be made.
5 Technology Tips: Preparing for Disclosures on Tax Credits & Incentives under FASB 832
In conjunction with ACT - the Tax Technology Association, we recently hosted a webinar to discuss the new disclosure requirements under FASB Topic 832 and how to prepare from a technology standpoint. While many have forgotten about this ASU (accounting standards update) due to tax reform and other accounting standards affecting tax, it's set to be finalized by June 30, 2018.
Infographic - FASB Topic 832 Timeline (updated)
From Paper to the Cloud: The Power of New Technology
An old, veteran salesman used to tell me stories about the good ol’ days of enterprise technology sales from back in the late 1970’s.
He spoke of the fierce competition that existed between his company and a few others--all of which would one day become multi-billion dollar global giants. He described how in those days, before computers were commonly used in the workplace, everyone used to track their sales prospects data on paper or on white boards.
FASB Nears the Finish Line on Materiality
The Financial Accounting Standards Board (FASB) has been working through a project on materiality for the past year-and-a-half, because up to now, there has been no explicit U.S. GAAP accounting standard for the accounting of government assistance.
Materiality is integral to Topic 832, Accounting Standards Update, Government Assistance in terms of defining a threshold for which government incentives will ultimately have to be disclosed.
Scott Nelson, Founder of BIGcontrols: Bringing ‘Moneyball’ to Government Incentives
The client on the phone had a desperate tone in his voice as he said he needed help. He said the CEO was breathing down his neck. His company had not seen a dime on two of their government incentives for the last few years. On the other end of the phone, Scott Nelson, a Big Six government incentives consultant, had an “aha moment”.
FASB Topic 832 Redeliberations
The Financial Accounting Standards Board (FASB) convened on May 4, 2016 for the first time after the Exposure Draft Comment Period closed on Topic 832 to discuss feedback from staff on the comment letters and other input from various outreach performed by the staff. Overall most stakeholders are supportive of the FASB's efforts to increase transparency in government incentives & address the diversity in practice that exists today in accounting for government assistance.
99% of Companies Subscribe to this Proverb
According to Wikipedia, the source that popularized this pictorial maxim is a 17th-century carving over a door of the famous Tōshō-gū shrine in Nikkō, Japan. The three wise monkeys symbolize the proverbial principle "see no evil, hear no evil, speak no evil". There are many meanings associated with this proverb and it's often used to describe someone turning a blind eye.
FASB to Redeliberate Disclosures on Government Incentives
The Financial Accounting Standards Board (FASB) has been deliberating its project for a proposed Accounting Standards Update (ASU), Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance since January 29, 2014. BIGcontrols, submitted a comment letter on the FASB's Exposure Draft for Topic 832 on the February 10, 2016 deadline.
The Elephant in the Boardroom
Part 3 of a 3-Part Series
I just returned from the Credits & Incentives Symposium, hosted by IPT (Institute for Professionals in Taxation). One of the consistent themes I heard in many of the sessions I attended was a concern around compliance management of tax credits & incentives - from both industry and government agencies.
The Elephant in the Boardroom
Part 2 of a 3-Part Series
The Financial Standards Accounting Board (FASB) is about to issue an Exposure Draft on its project “Disclosures by Business Entities about Government Assistance”. One of the primary objectives of the FASB’s project on new disclosure requirements for government incentives is to provide transparency where none exists today.
The Elephant in the Boardroom
Part 1 of a 3-Part Series
It’s no surprise that no one is talking about a new Financial Accounting Standards Board (FASB) pronouncement on government incentives that’s coming down the pike. For years, major corporations have been burying how they account for government incentives on their balance sheets & footnotes to their financial statements under some random line item like “Other Assets”.
Tax Incentives: Don’t Lose Sight of Commitments
The concept of accountability isn’t new — especially when discussing taxpayer dollars and where they are spent by government agencies. Governments are under constant scrutiny regarding tax revenue and expenditures from their constituents, the media, and the public as a whole. However, there has been an increasing call for accountability when it comes to corporate tax credits and incentives for economic development.