The Committee of Sponsoring Organizations of the Treadway Commission (COSO) recently published new guidance on how companies can promote ‘risk appetite’ as part of decision-making. It is especially relevant in today’s uncertain marketplace. Digesting The New Guidance The COSO guidance, ‘Risk Appetite — Critical to Success: Using...
Some companies are expected to report impairment losses in fiscal year 2020 because of the COVID-19 crisis. Depending on the nature of your operations and assets, the pandemic could be considered a ‘triggering event’ that warrants interim impairment testing. Examples of assets that may become impaired...
Outsourcing may appeal to organizations that are currently struggling with mounting overhead costs during the COVID-19 crisis. By outsourcing, you convert certain fixed overhead costs associated with compensating and supporting employees into variable costs that can be scaled back in an economic downturn — or...
Many companies struggle to close the books at the end of the month. The month-end close requires accounting personnel to compile data from across the organization. Under normal conditions, this process can strain internal resources. However, in recent years the accounting and tax rules have undergone...
Private companies and most non-profits were supposed to implement updated revenue recognition guidance in fiscal year 2019 and updated lease guidance in fiscal year 2021. In the midst of the COVID-19 crisis, the Financial Accounting Standards Board (FASB) has decided to give certain entities an...
Many people are currently working from home to help prevent the spread of COVID-19. Your external auditors are no exception. Fortunately, in recent years, most audit firms have been investing in technology and training to facilitate remote audit procedures. These efforts have helped lower audit...
Sustainability reports explain the impact of an organization’s activities on the economy, environment, and society. During the novel coronavirus (COVID-19) pandemic, stakeholders continue to expect robust, transparent sustainability reports, with a stronger emphasis on the social and economic impacts of the company’s current operations than...
Imagine this scenario: A company’s controller is hospitalized for COVID-19, and she is the only person inside the company who knows how its accounting and payroll software works. She also is the only person with check signing authority, besides the owner, who is in lockdown...
Financial statements are not particularly meaningful without a relevant basis of comparison. There are two types of benchmarks that a company’s financials can be compared to – its own historical performance and the performance of other comparable businesses. Before you conduct a benchmarking study, however, it...
The novel coronavirus (COVID-19) pandemic has adversely affected the global economy. Companies of all sizes in all industries are faced with closures of specific locations or complete shutdowns; employee layoffs, furloughs, or restrictions on work; liquidity issues; and disruptions to their supply chains and customers....