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.
The Financial Accounting Standards Board (FASB) met on November 14, 2018 to make some meaningful progress and decisions on Topic 832: Disclosures by Business Entities about Government Assistance. The Board’s tentative decisions are finally providing some light at the end of this tunnel.
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.
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.
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.
When it comes to blockchain technology, a majority of people understand it has something to do with Bitcoin (BTC) and that's about it. While it's true that the popular cryptocurrency relies on blockchain, BTC represents a relatively insignificant portion of the blockchain market share. The implications of blockchain adaptation are far-reaching, with the potential to not just disrupt, but foundationally change the way most industries operate.
2018 update of this Infographic: the objective of FASB Topic 832 is to develop disclosure requirements about government assistance, also known as tax credits & incentives - this Infographic depicts a timeline of where this project originated as well as its projected completion date.
The site selection process is one of the most significant aspects of opening a new facility or corporate location. When companies are deciding where to site a new location, factors such as labor, real estate, demographics, proximity to market, taxation, state & local regulations and many other factors must be considered.
In a digital era where software is eating the world, the vast majority of public companies are struggling to stay current when it comes to deploying new technologies in their tax and finance departments. It’s true that one of the primary duties of the chief financial officer is to de-risk the enterprise, but at what cost when they are losing competitive advantage due to slow adoption of new technology?
We'll be attending this year's 2017 Financial Executives International's 36th Annual Current Financial Reporting Issues Conference in New York City on Nov. 13-14. As our first sponsorship of an FEI conference, we're really looking forward to engaging with all the attendees and showcasing our new technology that just won us accolades as a top 100 most innovative RegTech company in the world.
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.
Imagine if all public government information were to become transformed into standardized, open data? The Data Coalition not only envisions this, they are the world’s only trade association that is completely dedicated to making this happen. Their sister organization, the Data Foundation, seeks to define an open future for our data for a better government and society through research, education, and programming.
When Big 4 staple Deloitte comes out with a list of the top RegTech companies, it’s a sure sign that this emerging tech sector has arrived.
We may be wary of another tech buzzword given how much hype, and at times hyperbole, past buzzwords have received. But how many fads have been based on a topic so practical and operationally based like RegTech?
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.
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”.
It’s estimated that the United States has over 27 million entrepreneurs. So when Konsus recently released a list of top technology startup pitch decks and ranked BIGcontrols number 23, it says a lot about BIGcontrols and the value behind the mission of our company. Konsus based their listing on our presentation at 500 Startups, a leading technology incubator and investor which attracts the best and brightest technology innovators.
If anyone thinks the states of our country are not united, the New York Times has coined a term that suggests otherwise: “ The United States of Subsidy” . The Times is referring to the subsidies, often referred to as government incentives, that are currently being offered by all levels of government to companies across the nation in order to attract business to their jurisdiction and to stimulate investment.
With every new president, there always comes some uncertainty to how the new regime will affect policy. However, with the presidential inauguration of Donald Trump now behind us, there is a heightened level of anticipation for what might happen in the coming months. Even without the wildcard that is President Trump, a Republican controlled House and Senate will ensure that many changes will be coming that will greatly impact compliance in regulated industries in 2017.
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.
The objective of FASB Topic 832 is to develop disclosure requirements about government assistance, also known as tax credits & incentives - this Infographic depicts a timeline of where this project originated as well as its projected completion date.
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.
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.
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.
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.
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”.