Accounting Rules/Changes

Companies Should Update Lease Accounting Systems

As the account year comes to an end, there is a major accounting change coming in 2016, with the FASB’s vote to proceed with its new standard for reporting lease obligations starts the clock ticking.

The FASB board voted to proceed with the standard, which will require companies to include lease obligations on their balance sheets. The final Accounting Standards Update is expected to be published in early 2016.

FASB decided the upcoming standard will be effective for public companies for fiscal years (and interim periods within those fiscal years) starting after December 15, 2018. For private companies, it will be effective for yearly periods beginning after December 15, 2019. The board will permit companies to adopt the measure early once the standard is published.

The big changes to lessee accounting “may require preparers to implement new systems and internal controls and will result in substantial additions of lease obligations to many balance sheets,” the Journal of Accountancy reported.

Still, the changes may not be as bad for U.S. companies as they could have been had FASB gone through with previous plans to converge its new lease-accounting standard with that of the International Accounting Standards Board. In August 2014, after years of trying to meld their standards, the two boards announced that they were going to go their separate ways.

To learn more about the timetable for the Financial Accounting Standards Board’s new leasing standard, click on the link below to read the entire article.

http://ww2.cfo.com/financial-reporting-2/2015/11/companies-update-lease-accounting-systems-experts-advise/

 

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CLIENT FOCUS  |  HONESTY AND INTEGRITY  |  RELIABILITY  |  ACCOUNTABILITY

Our Mission at Lease Genie:

  • Provide small and medium size business owners with access to a full line of asset based equipment finance solutions.
  • Understanding our client’s business requirements and will assist in overcoming current and future growth challenges.
  • Empowering our clients to meet these challenges and to achieve the growth and profitability.
  • Build a long-lasting partnerships and strives to become your sole source of capital management solutions.

You can always count on Lease Genie to foster a relationship based on the principles of integrity, trust, and the pursuit of excellence.

Contact Lease Genie for more information.

 

REF: CFO.com | US | (Nov. 12, 2015)

Tax Benefits/Section 179 for New/Used Equip. Purchases

I am often asked by clients about Tax Benefits / Section 179 of the U.S. Tax Code for new / used equipment purchases.

As businesses look to minimize their tax liability, Section 179 is the best Tax Benefits tool the government has to stimulate small and medium businesses.  Section 179 Tax Benefits is not meant for conglomerates; Section 179 is for small and medium sized businesses.  It’s a tax deduction that lets a business write off the full value of qualifying equipment, new or used.

Under Section 179 of the tax code, a business taxpayer can currently deduct, or “expense”, qualified assets placed in service during the year, up to a specified amount.  After a series of extensions (with some modifications), a maximum deduction of $500,000 was allowed for 2013, subject to a phase-out for assets costing more than $2 million.  However, when this provisions expired after 2013, the limit for 2014 reverted to a paltry $25,000 with just a $200,000 phase-out threshold.

There is on-going debate in United States Congress regarding extending Section 179 Tax Deduction / Tax Benefits, which is due to expire in 2015.

To read more about Section 179 click on the link below to read the entire article.

Tax Benefit, Understanding Section 179 of the U.S. Tax Code


CLIENT FOCUS  |  HONESTY AND INTEGRITY  |  RELIABILITY  |  ACCOUNTABILITY

Our Mission at Lease Genie:

  • Provide small and medium size business owners with access to a full line of asset based equipment finance solutions.
  • Understanding our client’s business requirements and will assist in overcoming current and future growth challenges.
  • Empowering our clients to meet these challenges and to achieve the growth and profitability.
  • Build a long-lasting partnerships and strives to become your sole source of capital management solutions.

You can always count on Lease Genie to foster a relationship based on the principles of integrity, trust, and the pursuit of excellence.

Contact Lease Genie for more information.

REF. – The LeaseGuy (September 23, 2015)