Articles

Boards of Directors and the not-for-profit organizations (NFPs) they serve have at least one thing in common: they come in all sizes and levels of sophistication. But regardless of their size or sophistication, all Boards are bound by a common duty to accept fiduciary responsibilities and provide operational oversight.

Accounting seeks to accurately describe the true economics of companies and their transactions. Since accuracy competes with achieving broad application, the degree of accuracy is not perfect. To manage gaps between the accounting story and the economic story, we use mechanisms such as EBITDA to better understand the economic story and make better decisions.

Under Internal Revenue Code (IRC) Section 274(a)(4), no deduction is allowed for an expense of a qualified transportation fringe benefit (QTFB) provided to an employee of a taxpayer. IRC Section 512(a)(7) provides that a tax-exempt organization’s unrelated business taxable income (UBTI) is increased by the amount of the QTFB expense that would be non-deductible under IRC Section 274.

The recently enacted Opportunity Zone (OZ) legislation provides for two independent approaches to the basic investment proposition: ownership of OZ fixed assets (typically real estate) versus ownership of operating businesses located in the subject zones.

In our continuing efforts to cover tax matters of interest to businesses with global relationships, the following articles are presented in the March 2019 edition of International Tax Insights.

In a perfect world, we would not have to concern ourselves that our IT infrastructure and devices are not self-secured and impervious. Unfortunately, even the latest equipment and programs can eventually succumb to infiltration by bad actors.

A strong internal control system is important to charter schools for many reasons.

Over the years, PKF O’Connor Davies has striven to remain at the forefront of financial solutions for our global as well as domestic family office (FO) clients.

That’s a good question, and one that affects tens of thousands of taxpayers for the 2018 filing year. Included in the Tax Cuts and Jobs Creation Act of 2017 is a deduction for up to 20% of income generated from a qualified business.

As many colleges, universities and their related foundations gear up to implement Accounting Standards Update (ASU) 2016-14 – Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities, one thing has become clear: liquidity is now a significant new disclosure which deserves important consideration.

Over the past two years, we have noted a significant increase in interest among our clients in transforming their accounting and financial functions into high-performing units.

The Financial Accounting Standards Board (FASB) issued accounting standards update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) in May 2014, almost five years ago.