IRS explains which meals qualify for temporary 100% expense …
WEBApr 8, 2021 · The IRS released guidance on Thursday explaining when the temporary 100% deduction for restaurant meals is available and when the 50% limitation on the deduction for food and beverages continues to apply for Sec. 274 purposes (Notice 2021-25).Under Sec. 274(n)(1), a deduction for any expense for food or beverages is generally limited to 50% of the amount that would otherwise be deductible.
A Risk-Based Approach to Journal Entry Testing - Journal of …
WEBTo extract journal entries that equate to round multiples of 10,000, 100,000 and 1,000,000, use the Excel MOD () function, which provides the remainder after the auditor divides a number by a divisor. For example, say that $10,422 is in cell A1 and the function MOD (A1,1000) is placed in cell B1.
Accounting for sale and leaseback transactions
WEBOn Dec. 31, 2021, the seller-lessee would record the transaction as shown in the table "Journal Entry Based on Amortization Table.". The seller-lessee would make similar entries for the remaining nine years. Next, assume the contract provided Smith Corp. with an option to purchase the building on Jan. 1, 2026, for $12,000,000 and that the assets similar to the subject asset are not readily ...
Challenges to consider in auditing revenue recognition
WEBJul 1, 2020 · FASB's new revenue recognition standard, FASB ASC Topic 606, Revenue From Contracts With Customers, is one of the most significant changes ever in U.S. GAAP. The new, principles-based standard requires consideration of a five-step framework that includes estimates on the revenue recognized for the accounting period (see the sidebar, "Independence Missteps Related to Revenue Recognition," below).
Frequently asked engagement letter questions - Journal of …
WEBSep 1, 2021 · Engagement letters can help prevent a disagreement from growing to a claim. If a claim should arise, the existence of an engagement letter generally leads to lower claim severity. In a 2017 analysis, the increase in the average dollar amount of claims when engagement letters were not used ranged from 19% to 71%, depending on the firm size.
Carry your losses (further) forward - Journal of Accountancy
WEBMay 1, 2018 · Under current law, assuming each of the tax years takes place after Dec. 31, 2017, and using the same taxable income or (losses) as above, the $500 of loss in year 2 must be carried forward to year 3 and can only be utilized to the extent of 80% of taxable income, or $80. Total federal income tax paid (after taking into account the carryforward ...
A new take on ethics and independence - Journal of Accountancy
WEBDec 1, 2018 · Professional accountants are required to apply the conceptual framework to identify, evaluate, and address threats to independence. Independence "of mind" and "in appearance" requires adherence to the fundamental principles of integrity and objectivity. New and improved provisions help accountants …
Start or review an accountable plan - Journal of Accountancy
WEBFeb 1, 2020 · To offer an accountable plan, an employer must comply with three standards: The expenses must have a business connection; The expenses must be substantiated within a reasonable period; and. The employee must return any money not spent to the employer, also within a reasonable period. If any of the three conditions isn't met, the reimbursement ...
Pricing, billing and collecting fees - Journal of Accountancy
WEBJanuary 31, 2012. CPA firms provide invaluable advice to business clients but often struggle to run their own businesses effectively, particularly in the areas of pricing, billing and collections. Failure to set appropriate fees, deliver bills in a timely fashion and collect payment promptly—or even in full—cuts into a firm’s ...
The pros and cons of LLCs - Journal of Accountancy
WEBDec 1, 2018 · The pros and cons of LLCs. This popular entity choice serves a wide variety of purposes. By Walter D. Schwidetzky, J.D., LL.M. December 1, 2018. Image by DigtialStorm/iStock. TOPICS. The use of the limited liability company (LLC) has mushroomed in popularity over the past two decades. IRS statistics show a 66% increase in domestic LLCs between ...