The deadline to implement major changes in the way leases are treated for accounting purposes may appear to be well in the future: late 2019 for publicly traded companies, and January 1, 2020 for privately held companies and non-profits. But accounting professionals are discovering that the work necessary to make the transition is significantly more complicated than anticipated.
The new standards, which apply to all companies (public, private and non-profits) that issue a financial statement in accordance with Generally Accepted Accounting Principles (GAAP) and have leasing transactions, will require leased assets to be recognized on the organization’s balance sheet.
This may have a significant impact on bank loans, as adding operating leases – which appear as debt – to the balance sheet may affect loan covenants by changing the amount of debt you are carrying. As a result, your business could slide into default on your loans without realizing it. The solution is likely to be a renegotiation of loan covenant terms, or a waiver or change in your lease agreement. Read more here.
Congratulations to Gray, Gray & Gray Partners James A. DeLeo and Derrick J. Rebello on their article “Cut through the confusion with a quality of earnings report,” which was featured in the Worcester Business Journal’s Annual Business Buy/Sell Directory & Resource Guide 2015.
In this article, DeLeo and Rebello discuss one of the most important outcomes of financial due diligence related to a potential merger or acquisition – a quality of earnings report – and why no two reports should be the same. Read the full article here to discover the importance of a quality of earnings report for evaluating a company’s financial health.
We are elated to announce the addition of Brad Carlson to Gray, Gray & Gray’s Partner Group! Brad has served as Gray, Gray & Gray’s Director of Tax since joining the firm in 2011.
“Brad Carlson has been a steady leader in our Tax Department through several years of firm growth and significant changes in the tax landscape,” said Joe Ciccarello, Managing Partner of Gray, Gray & Gray. “He continues to provide valuable, well-informed guidance to both corporate and individual clients.”
Congratulations on this well-deserved promotion, Brad!
Read the press release here.
The Partners and Teams of Gray, Gray & Gray, LLP and Green & Green, LLC are pleased to announce the merger of our firms – effective November 1, 2014. The combined firm will operate as Gray, Gray & Gray, LLP, with consolidated offices located in Canton, MA.
“We are very pleased to be joining forces with Green & Green, and look forward to working with their outstanding staff and clients,” said Joe Ciccarello, CPA, Managing Partner of Gray, Gray & Gray. “We have taken this step for many reasons – primary among them being our desire to provide our clients with a wider and deeper range of services. Our combined talents and abilities mean our clients will benefit from a more comprehensive scope of accounting, tax strategy, business advisory and wealth management services.”
Read the full press release here.
The Internal Revenue Service (IRS) office is alerting financial institutions to be wary of fraudulent emails, ostensibly from the IRS, requesting personal financial data on account holders under the Foreign Account Tax Compliance Act (FACTA). The emails request data such as account holder identities, account information, and confidential passwords.
The IRS says it does not request specific account holder identity information over the phone, by fax or by email, and does not solicit FACTA passwords or other confidential account information. They report that incidents of these “phishing” scams involving FACTA have occurred in multiple countries.
Gray, Gray & Gray’s Westwood Headquarters is now located in Canton, MA (just a few miles away from our previous location)!
Gray, Gray & Gray, LLP
150 Royall Street
Canton, MA 02021
We’re already up and running in our new space, and look forward to serving you from our new Canton home!
Please note: Our telephone numbers, fax numbers and email addresses all remain the same.
Click here for directions to our new Canton office.
Gray, Gray & Gray and leading M&A professionals kicked off the official start of summer with the seventh invitation-only DealMakers event on June 24th. The event, which was held at Sky Restaurant in Norwood, MA, brought together nearly 40 members of the New England M&A community for deal flow opportunities and a lively roundtable discussion about trends and market activities. Continue reading