Monthly Archives: July 2017

Internal Use Software – Determining Which Accounting Guidance to Use

In the last decade, the cloud computing industry has grown exponentially. Software-as-a-service (SaaS) platforms are currently dominating the industry, and internal use software offerings and methods of delivery are continuously evolving. Despite these sweeping changes, accounting guidance has had no major changes. As a result, people are often confused on how to account for the cost of developing a SaaS product in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Entities continuously question whether they should follow ASC 350-40: Internal-Use Software or ASC 985-20: Costs of Software to Be Sold, Leased or Marketed. In most cases, SaaS companies should follow …read more

Read more here:: Technology

Accounting for Development Costs of Internal Use Software

Internal use software is software that is acquired or internally developed to meet an entity’s internal needs. These internal needs includes, but is not limited to, software that is only used internally, such as payroll systems and CRM tools, and cloud-based SaaS products that the entity’s customers are provided hosted access for a period of time. U.S. Generally Accepted Accounting Principles (GAAP) offers two methods for accounting for the cost of software development: ASC 350-40: Internal Use Software and ASC 985-20: Costs of Software to Be Sold, Leased or Marketed. Most SaaS companies’ software development costs generally fall under ASC …read more

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Is Your Injury Settlement Payment Taxable?

One of the most frequently asked questions tax professionals receive is “Are injury settlement payments are taxable?” According to Code Sec. 104(a)(2), payments received as compensation for a personal physical injury or physical sickness are not taxable. The key term here is physical. Payments for emotional distress or other reasons that do not stem from a physical injury are taxable income. Likewise, a portion of punitive damages awarded are taxable income even if they are related to the physical injury. This is ultimately because the purpose of a punitive damage award is to punish the defendant rather than to …read more

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Family Law Case Studies: Part I

On a quarterly basis, Aronson’s Financial Advisory Services Group experts will provide synopses’ on recent court decisions on tax, financial, and valuation issues. This case studies series aims to showcase current trends for family relations attorneys in the Washington D.C. Metro Area.

U.S. Supreme Court

May 15, 2017Federal law preempts state as to veteran’s waiver of retirement pay. In Howell v. Howell, SCOTUS held that federal law prevents a state court from ordering a veteran to “indemnify” a divorced spouse for the loss of a portion of the veteran’s retirement pay caused by the veteran’s waiver of retirement pay …read more

Read more here:: Beyond The Numbers

DCAA Reports to Congress on FY2016 Activities

The Defense Contract Audit Agency’s (DCAA) effort to realign resources and reduce overall audit backlog is certainly paying off. The results of the DCAA’s FY2016 activity report are out, and the numbers tell an uplifting story for government contractors. Below are a series of key findings the agency has released to Congress.

  • The DCAA’s workforce of 4,513 employees issued over 4,200 audit reports. The agency examined $287B in defense contractor expenses, resulting in $9.9B in exceptions.
  • Officials saved $3.6B in defense spending during FY2016 related to DCAA audits. The agency was able to gain efficiencies by completing multi-year incurred cost audits …read more

    Read more here:: Government Contracting