ASU 2018-13 Amendments to Fair Value Measurement Disclosures

 

AICPA’s National A&A Resource Center

Alert
August 29, 2018
ASU 2018-13
Amendments to Fair Value Measurement Disclosures

 

ASU 2018-13
Center for Plain English Accounting
AICPA’s National A&A Resource Center

Amendments to Fair Value Measurement Disclosures

August 29, 2018

On August 28, 2018, the FASB issued Accounting Standards Update (ASU) 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in ASU 2018-13 apply to all entities that are required, under existing U.S. generally accepted accounting principles (U.S. GAAP), to make disclosures about recurring or nonrecurring fair value measurements. Certain of the disclosures that are required by the amendments in ASU 2018-13 are not required for nonpublic entities.

Removed Disclosure Requirements

The amendments in ASU 2018-13 remove the following disclosure requirements from FASB Accounting Standards Codification (FASB ASC) 820, Fair Value Measurement:

  • The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy
  • The policy for timing of transfers between levels
  • The valuation processes for Level 3 fair value measurements
  • For nonpublic entities, the changes in unrealized gains and losses for the period included in earnings for recurring Level 3 fair value measurements held at the end of the reporting period

Modified Disclosure Requirements Continue reading

1099 Reporting Requirements for Tax Year 2017

Form 1099 Filings

Dear Client:

The IRS has become stricter with 1099 information reporting and filings by assessing harsher penalties. The penalties associated with missing the deadline or not filing 1099s can range from $30 to $100 per form, with a maximum fine of $500,000 per year. If the IRS determines there is intentional disregard of the requirements, the penalty can reach as high as $250 per form, with no maximum.

For the 2017 calendar year, Form 1099-MISC are due to be provided to recipients by January 31, 2018. Form 1099-MISC must also be filed with the IRS (and states, if applicable) by January 31, 2018.

Other 1099 series forms are generally due to the Recipient by January 31, 2018 and to the IRS by February 28, 2018 if paper filing, and by April 2, 2018 if electronic filing.

If you are submitting 250 or more 1099 forms, you must file electronically.

IRS Form 1099-MISC summarizes payments made to unincorporated businesses and individuals and to all lawyers and law firms regardless of type of entity. You must send out a Form 1099-MISC if your business paid $600 or more during the year to such businesses or individuals; this includes any partnerships or Limited Liability Companies you may have contracted throughout the year. If you have not obtained a Form W-9 from your vendors indicating the type of entity they are, you should assume if the name of the business does not include “Inc., Incorporated or Corporation” in its name, it is an unincorporated business, and a Form 1099-Misc would be required. Continue reading

RotenbergMeril Tax Alert – December 2017

2017 Tax Reform: Client Letter on last-minute year-end moves in light of Tax Cuts and Jobs Act

Dear Client:

Congress is enacting the biggest tax reform law in thirty years, one that will make fundamental changes in the way you, your family and your business calculate your federal income tax bill, and the amount of federal tax you will pay. Since most of the changes will go into effect next year, there’s still a narrow window of time before year-end to soften or avoid the impact of crackdowns and to best position yourself for the tax breaks that may be heading your way. Here’s a quick rundown of last-minute moves you should think about making.

Lower tax rates coming. The Tax Cuts and Jobs Act will reduce tax rates for many taxpayers, effective for the 2018 tax year. Additionally, many businesses, including those operated as passthroughs, such as partnerships, may see their tax bills cut. Continue reading

States struggle in taxing the sharing economy

Although millions of Americans are using “sharing economy” services such as Uber and Airbnb, states are struggling to apply existing tax laws to these technologies.

Only eight states require companies such as Uber to collect sales tax, while a number of states consider this to be a nontaxable transportation service, according to Bloomberg BNA’s 2017 Survey of State Tax Departments. Moreover, 25 states said that the owner of property listed for short-term accommodations on a third-party site such as Airbnb is responsible for collecting the sales tax, while 15 states said that the third party was responsible. A number of states hold both the owner and the third party responsible for collecting the tax.

 

LEARN MORE NOW

IRS: Home Office Deduction Often Overlooked by Small Business Owners

WASHINGTON — The Internal Revenue Service today reminded small business owners who work from a home office that there are two options for claiming the Home Office Deduction. The Home Office Deduction is often overlooked by small business owners.

As part of National Small Business Week (April 30-May 6), the IRS is highlighting a series of tips and resources available for small business owners.

LEARN MORE NOW 

IRS adjusts health savings account limits for 2018

The Internal Revenue Service released the 2018 inflation-adjusted limitations for health savings accounts Thursday.

In Revenue Procedure 2017-37, the IRS said the annual contribution limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,450. For calendar year 2018, the annual limitation on deductions for an individual with family coverage under a high deductible health plan is $6,900. HSAs typically require high deductibles, but they allow people to set aside money from their paychecks on a pre-tax basis for medical expenses.

Learn More Now

3 Ways to Make the Most of Your Tax Refund

In this video, Entrepreneur Network partner Brittney Castro explains three good ways you can spend the money you get from your tax refund. The first way is to fund an IRA, so you can invest your money into retirement. To maximize the investment, Castro stresses the importance of meeting with a financial planner for this step to decide which kind of IRA would be best for you.
CLICK HERE FOR VIDEO

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