Accounting Updates are articles, tips or announcements regarding accounting and tax-related subjects that may affect or benefit your business or industry.
In recent years, regulators have intensified their focus on and scrutiny over retirement plan controls. Given this, it’s critical to ensure that the proper procedures and controls are in place for your qualified plan.
Now is a good time to begin preparing a year-end checklist for your retirement plan. Creating a checklist is a good way to help ensure that your plan remains in compliance.
If you understand that your nonprofit will face conflicts of interest, you can better plan for them.
If your plan receives audited financial statements, they may be accompanied by a management letter. This can be a valuable resource when it comes to making your plan more efficient and identifying potential risk associated with plan qualification and ERISA compliance.
New rules will change the way nonprofits report and describe their net assets. These changes will reduce the number of net asset classes from three to two and require separate subtotals for activities with and without donor restrictions.
If your company is involved in a merger or spinoff, you’ll need to plan carefully for how your qualified retirement plan will be affected. Failure to plan ahead for the impact of a merger or spinoff on your plan could lead to unintended consequences.
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This standard eliminates the transaction- and industry-specific revenue recognition guidance under the current GAAP and replaces it with a principle-based approach for determining revenue recognition. The FASB has subsequently issued multiple ASUs that modify or add to the original standard.
The increase in available software options has led software companies to look for ways to differentiate themselves from their competition. An increasingly popular way to do this is to obtain a System and Organization Controls (SOC) report which addresses the internal control environment of the software companies to help ensure the application’s stability and security.
There are common management issues in employee benefit plans. Having the appropriate Complementary User Entity Control in place will assure to plan management that policies and procedures are being followed.