Year-end prep: Accounting tips for unpredictable economic times.

TLDR:

Key Points:

• Volatile economic conditions can impact financial reporting and accounting practices.
• Businesses need to stay updated on accounting guidance and work closely with advisors.

In today’s uncertain economic landscape, businesses face challenges that impact financial reporting and accounting practices. It’s crucial for organizations to stay updated on accounting guidance, assess economic conditions’ impact, and work closely with advisors to ensure accurate financial reporting under US GAAP.

Year-end Reporting Reminders: Accounting Considerations During Periods with Volatile Economic Conditions

The article discusses key issues accounting and finance professionals should consider during the year-end close and financial reporting processes:

1. The impact of rising interest rates on lease accounting under ASC 842, Leases.
2. Collectability and CECL (ASC 326), Financial Instruments – Credit Losses.
3. Accounting for restructurings, including one-time severance costs.
4. Potential triggering events and impairment considerations under ASC 350 and ASC 360.

Each of these considerations is crucial for organizations facing volatile economic conditions. Addressing these issues proactively and accurately can help ensure compliance with accounting standards and accurate financial reporting. It’s essential to engage with knowledgeable advisors like Marcum to navigate these complexities successfully.