Summer 2010
Posted June 8, 2010
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Inside this issue:
Even as the economic meltdown of the past two years shows signs of improvement, Americans are faced with an economic crisis of a different sort. New government spending, on everything from the economic stimulus to health care reform, means federal deficits are heading toward record highs.
Just over a year ago, the future of accounting standards in the United States seemed certain: Generally Accepted Accounting Principles (GAAP) were on the way out, and International Financial Reporting Standards (IFRS) were on track to be adopted, first for public companies, and then some years down the road, for private enterprises.
The complexities of U.S. tax law are multiplied when a U.S.-based company begins exploring global business opportunities. Corporate structure, supply chain, cross-border transactions, method and timeline of revenue declaration, international accounting issues and many other factors will impact the U.S. company’s tax obligations here and abroad.
A “partial plan termination” sounds like a serious matter. In fact, it can be serious, with consequences including the potential disqualification of an employee benefit plan by the IRS. But such dire consequences can be avoided if an employee benefit plan sponsor conducts a timely evaluation to determine if a partial plan termination (PPT) has occurred.
Risk is inherent in any business — without risk, there is no reward. The last two years, however, have sharply intensified the focus of organizations on their risk profile and how they are managing their risks.
In our current economy, technology spending has been focused primarily on maintenance rather than strategic growth. Even after nearly two years, some businesses continue to take a “wait and see” approach to technology plans and investments. And yet technology marches on, becoming more and more integral to business growth.
