4th Quarter, 2009
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4th Quarter, 2009 |
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IRS Attacks Tax Inventory
By Brian Leppa, CPA, Tax PartnerThe IRS has recently announced that it intends to shift resources from large taxpayers to mid-size taxpayers. As a result, the Large and Mid-Sized Business (LMSB) division of the Internal Revenue Service (IRS) has begun to perform limited scope audits of taxpayers regarding tax inventory. A Houston based IRS team has been created for this role. This team requests very detailed inventory and Cost of Goods Sold (COGS) information, and often has a fast turnaround with large proposed adjustments. Read more >>> RFID Offers a Multitude of Advantages
By Frosh Saure, Audit ManagerRadio Frequency Identification) (RFID), sometimes called dedicated short range communication (DSRC), is a technology that incorporates the use of electromagnetic or electrostatic coupling in the radio frequency (RF) portion of the electromagnetic spectrum to uniquely identify an object, animal, or person. RFID is coming into increasing use in the manufacturing and distribution industry as an alternative to the bar code, offering the advantage of not requiring direct contact or line-of-sight scanning. Read more >>> Proposed Changes to FASB ASC 450-20 (Accounting for Contingencies) and IFRS
By Michael Cantrell, CMI, Senior Tax ManagerAt its most recent late summer board meeting, the Financial Accounting Standards Board (FASB) re-addressed its 2008 proposal requiring enhanced disclosure requirements and standards for loss contingencies covered under FASB ASC 450-20 (Accounting for Contingencies). Because of the high level of responses the FASB received during the comment period, particularly regarding possible adverse effects of the proposed changes, the focus of this initiative is now limited to enhanced qualitative disclosures of litigation matters. It is anticipated that the FASB will address other types of loss contingencies as well as related quantitative matters at some future date. Read more >>> |
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Welcome
to Manufacturing & Distribution Industry
Insight, our brand new quarterly newsletter
dedicated specifically to the manufacturing
and distribution industries. In this inaugural
issue, we examine a few topics of interest.
The first is a look at the IRS’ new attack
on tax inventory (IRC 263A) and what it
means for you. After a brief history, learn
when IRC 263A applies, the difference between
full absorption and UNICAP, and other items
you should consider. Next, we review the
multitude of advantages that radio frequency
identification (RFID) offers, including
life cycle traceability, reduced errors
and labor costs, and increased capture
of information.