The straight line

The update suggests new disclosures that the Board believes would help users of financial statements better assess the potential risks faced by those organizations.

Just recently, President Obama signed a bill repealing a tax-compliance mandate that was included within last year’s health care law.

It’s been close to a decade since the high profile fraud incidents at Enron, WorldCom, and Adelphia took place, and the antifraud provisions of the Sarbanes-Oxley Act of 2002 were enacted. We’ve seen additional legislation enacted recently in the Dodd-Frank Wall Street Reform and Consumer Protection Act. So, is corporate fraud under control as a result?

The dilemma is that Section 199 and bonus depreciation are effective ways to mitigate taxes, but they tilt the imbalance in member’s equity further towards retained earnings. We are trying to address this with our coop clients so that decisions are made with an understanding of how they affect members in the current and future years.

Under the recommendations, a separate private company standards board would be established to make exceptions and modifications for both new and existing standards.

In addition to the changes made for Bonus Depreciation and 1099 reporting, several other items of interest were changed by the recent legislation for 2011 and 2012: