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FASB Lease Accounting, High School Leaders Conference at WMU, IRS Audit Procedures and more

by MICPA | Mar 01, 2016   ()

FASB Issues Lease Accounting Guidance
The Financial Accounting Standards Board (FASB) issued an Accounting Standards Update for financial reporting about leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, airplanes and manufacturing equipment. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with terms of more than 12 months. Consistent with current GAAP, the recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new ASU will require both types of leases to be recognized on the balance sheet. Learn more in this FASB In Focus overview, a FASB: Understanding Costs and Benefits document, and a video titled Why a New Leases Standard. 

Remembering Kim Mastrangel • 1960-2016
A very special member of our MICPA family, Kim Mastrangel, lost her battle with cancer on Feb. 28, 2016. She was 55. 

Kim was a tremendously valuable member of the MICPA family. She brought passion, enthusiasm and joy to every single day of her 39 years at the Association. Kim started in the mailroom and worked her way up to director in the Continuing Education Department, where she touched the lives of thousands of MICPA members through years. Kim recently took on the position of executive assistant to the president & CEO. 

Kim’s commitment reached beyond the office, as she was always willing to lend a helping hand and give back in the community. MICPA President & CEO Peggy Dzierzawski recently presented Kim with a named Michigan Accountancy Foundation (MAF) Scholarship that will benefit a future CPA in their fifth year or graduate program. “As she tried to smile, tears of happiness ran down her cheeks. She truly appreciated this honor and it clearly meant the world to her,” said Dzierzawski. “Kim made all those around her better and the CPA profession stronger with her knowledge, drive and compassion.”  Honoring her passion for the profession, those who would like to make a donation to the MAF in Kim’s memory, may do so here

MICPA Highlights Accounting Careers at Upcoming High School Leaders Conference at Western Michigan University
High school students will get a chance to learn about the interesting and varied careers in accounting at a leadership conference at Western Michigan University. The Michigan Association of Certified Public Accountants will hold the event from 8 a.m. to 1 p.m. on Thursday, March 3 at Fetzer Center. So far, students from 10 school systems plan to attend. Students at this conference are slated to learn about everything from forensic accounting to techniques for interviews and writing resumes. Since 2001, MICPA High School Leaders Conferences have brought together students and professionals to help young people see the benefits of having a CPA credential. Participants also will hear from college students about the transition from high school to higher education. The MICPA holds similar events at Oakland University and Wayne State University. This year’s OU event drew more than 240 students and teachers from 16 high schools across southeast Michigan. Read more.

IRS Posts New Large Business and International Audit Procedures
The IRS recently released Publication 5125, the Large Business &International Examination Process. The publication outlines a new audit process, effective May 1, 2016, which provides an issue-based approach for conducting professional examinations from the first contact with the taxpayer through the final stages of issue resolution. The enhanced process, which includes significant input from the LB&I workforce and was also jointly developed with external stakeholders, establishes roles and responsibilities for both LB&I examiners and taxpayers and sets specific expectations with respect to claims for refund. Read more.

Failing to File Just Got Costlier
Among other tax-related changes, the new Trade Facilitation and Enforcement Act of 2015, a measure authorizing U.S. Customs and Border Protection, increases the penalty for failing to file a tax return. President Obama signed the new law on February 24. The higher failure-to-file penalty is effective for returns to be filed after calendar year 2015, so it already applies this tax return season. Read more in this article from CPA Practice Advisor.

Health Care Tax Tips for Forms 1095-A, B and C
This year your clients may receive one or more forms that provide information about their 2015 health coverage. Be sure to familiarize yourself with these tips for forms 1095-A, 1095-B and 1095-C.

Tax Research Assistance Available For Practitioners
Knowing the correct tax authority for each issue is critical, which is why the AICPA Tax Division developed this online resource page to help practitioners effectively perform and document client research. AICPA Tax Section membership required for some resources.

Source: MICPA
Source: MICPA

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