Accounting for Investments in Debt and Equity Securities 
by Boulay
The accounting and financial reporting requirements for investments in debt and equity securities under US GAAP continues to be an area of focus and complexity for preparers and users of financial statements. This accounting topic applies to substantially all entities and investments often comprise a significant asset on the financial statements. The purpose of this …
by Boulay 
No More Disappearing Revenue in Business Combinations 
by Boulay
Under current accounting standards, businesses acquired with deferred revenues as of the transaction date have frequently experienced haircuts to the related revenues reported in the post-acquisition financial statements. Changes were recently made by the FASB to remove such negative results. With early adoption provisions, the issue of disappearing revenues may be avoidable as early as …
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New Reporting Standards for Audits of Private Companies 
by Boulay
What’s New? Audit reports for private companies will include some significant changes to the form and content of the report for 2021. The changes stem from the Statement on Auditing Standards (SAS) No. 134, issued by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA), going into effect for audits …
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Going Concern 
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Background Since 2017 as part of ASU 2014-15, US GAAP has required management of all companies and not-for-profit organizations to assess an entity’s ability to continue as a going concern under the requirements seen in subtopic 205-40. Prior to ASU 2014-15, US GAAP had no specific requirements related to the going concern assessment. The going …
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Summary of Recent FASB Proposed Accounting Standard Updates 
by Boulay
In December 2020, the FASB issued proposed accounting standard updates related to the measurement of deferred revenue in a business combination and a private company accounting alternative for evaluating goodwill triggering events. Both proposed standards could have a significant impact on the financial statements of entities that have goodwill and/or have an acquisition accounted for …
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Debt Covenants and Potential Impact on Debt Classification 
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In light of COVID-19 and its negative financial impact on businesses within certain industries, it is important to understand the potential impact that debt covenants can have on financial reporting. Most debt instruments contain at least one if not several covenants. A covenant represents a condition placed on the borrower by the lender whereby the …
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Accounting for PPP Loan Proceeds 
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The Coronavirus Aid, Relief, and Economic Security (CARES) Act created the Paycheck Protection Program (PPP) to provide small businesses with liquidity during the coronavirus pandemic. The program allows for loan forgiveness if the funds are spent on payroll expenses, rent, utilities and certain interest payments. Questions have arisen as to the proper accounting for the …
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