Ed Kwiatkowski, CPA. LLC

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Member of: AICPA, NJCPA, & CAI-NJ

Tax Updates

 

IR-2020-58 March 21, 2020

  • Tax filing and payment date extended to July 15, 2020.
  • Tax payments due April 15th can be deferred to July 15, 2020.
  • No additional forms or filings required to take advantage.
  • IRS urges taxpayers who are due refunds to file as soon as possible.  Refunds are being paid out in about 21 days.

For more information:

 https://www.irs.gov/newsroom/tax-day-now-july-15-treasury-irs-extend-filing-deadline-and-federal-tax-payments-regardless-of-amount-owed

 

 

FASB ASC-606 and Revenue Recognition- Relating to CIRAs

The Financial Accounting Standards Board (FASB) issued new guidance that created Topic 606 Revenue from Contracts with Customers, in the Accounting Standards Codification (ASC). Topic 606 supersedes the revenue recognition requirements in FASB ASC 972-605, Real Estate-Common Interest Realty Associations, Revenue Recognition which addressed industry-specific revenue standards solely for Common Interest Realty Associations (CIRAs). The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under the new revenue standard, FASB has established that an entity shall account for a contract with a customer that is within the scope of Topic 606 only when all of the five specified criteria have been met.


Larger firms specializing in the CIRA financial reporting industry agree that CIRAs should not adopt the new revenue recognition standard as it does not meet the requirements of the criteria outlined in the revenue standard, and that historically established industry practice for recognizing revenues from regular assessments remains as Generally Accepted Accounting Principles (GAAP).

 

For updates and more information there is a website to keep up to date:

http://asc606-for-ciras.info/