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The changes to revenue recognition under GAAP imposed by ASU 2014-09-Revenue from Contracts with Customers, as amended (ASU 2014-09), in the past would not have affected tax reporting. However, many organizations may wish to attempt to have their tax reporting conform to their now revised financial statement reporting. In addition, changes made to Section 451 by the Tax Cuts and Jobs Act now impose an "at least as rapid" test to ensure revenue is not recognized later for tax than book purposes for income tax purposes for organizations with an "applicable financial statement." This four-hour morning course looks at how the changes made by ASU 2014-09, either will create a situation where a taxpayer may wish to conform their reporting or where the taxpayer may be required to do so. In cases where a taxpayer wishes to make a change, we'll look at how to determine if the option is available. In addition, we'll look at the mechanics of obtaining IRS permission to change the tax accounting method necessary in all cases.

Objectives

Participants will be able to:

  • Recognize areas in their business where ASU 2014-09 will cause a divergence from current tax accounting reporting of revenue
  • Recognize situations where the ASU 2014-09 method will be acceptable tax methods and decide whether to seek permission to change the tax reporting
  • Understand the revenue conformity rules imposed by the Tax Cuts and Jobs Act and how implementing ASU 2014-09 will impact tax revenue reporting under those rules
  • Decide, for organizations with revenue less than $25 million, whether to opt for tax basis reporting to avoid revenue conformity requirements

Highlights

  • Accounting methods-what is the tax definition?
  • Revenue recognition under IRC Section 451 for tax purposes
  • Industries where ASU 2014-09 will significantly change revenue recognition
  • IRS rulings on accounting method changes due to ASU 2014-09
  • $25 million accounting method relief enacted by the Tax Cuts and Jobs Act

Who Will Benefit

Accounting and financial professionals in industry applying the changes to GAAP reporting found in ASU 2014-09, and CPAs in public practice that deal with clients that are implementing ASU 2014-09.

Credits

Category Amount
Tax 4.00
Yikes, the time is near. Please call NMSCPA at (505) 246-1699 to register.

Leaders

  • Edward Zollars

    Edward K. Zollars, CPA, is in public practice in Phoenix, Arizona as a partner with the firm of Thomas & Zollars & Lynch, Ltd. He has been in practice for over twenty five years, specializing in tax issues for closely held businesses and individuals. Ed has been professionally involved with both tax and technology issues, combing the two disciplines in starting the first tax podcast (Ed Zollars Tax Update, produced weekly dealing with current tax issues. He has been a member of AICPA Tax Division Committees dealing with tax and technology issues, and was the Tax Section’s representative on three occasions to the AICPA’s Top Ten Technologies project. Ed is also a member of the Phoenix Tax Workshop’s Advisory Committee, and currently serves on the Tax Legislation Liaison Committee for the Arizona Society of CPAs. Ed was selected as a Life Member by the Arizona Society of CPAs in May of 2010. Ed is a co-author of the Arizona Income Tax Guide published by the Phoenix Tax Workshop, and has written articles published in Practical Tax Strategies and the Tax Adviser. He has been a frequent contributor to a number of professional tax discussion groups, and served as systems operator on the AICPA’s Accountants Forum in the mid 1990s. He has spoken regularly on tax and technology topics since 1996, speaking before conferences sponsored by the AICPA and a number of state society of CPAs.

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