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.
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.
The partners and staff of Gray, Gray & Gray are pleased to announce that we are relocating our main offices to:
150 Royall Street, Suite 102
Canton, MA 02021
Our new, 25,000 square foot office will provide us with the additional room, meeting space, and technology support to allow us to continue to serve our clients’ tax, accounting, and advisory needs.
We have scheduled the actual move for mid-July. Day-to-day operations will not be affected. Our phone and fax numbers will also remain the same. Learn more here.
Welcome to Gray, Gray & Gray’s DealMaker News – the blog dedicated to assisting individuals on both sides of transactions with making deals happen. Here you will find information on the hottest topics in merger and acquisition, news about upcoming networking events, including “The DealMakers” events hosted by Gray, Gray & Gray, have the ability to make your voice heard, ask questions, and much more. Our M&A experts are active in the M&A community and maintain a strong reputation for professional, high quality service to our clients. This blog is one more way we go beyond the numbers to help facilitate knowledge-sharing and to foster new deals within the M&A community. Please check back often for updates or you can subscribe to follow our blog via email.
If you would like to receive our M&A deal flow updates and/or are interested in participating in an upcoming invitation-only DealMakers event, please contact Jim DeLeo or call 781.407.0300.
Yours in success,
The Gray, Gray & Gray Merger & Acquisition Team (otherwise known as “The DealMakers”)