Private Company Council Established

In 2009 a study was conducted to address how the accounting standards can meet the financial statement reporting needs of US private companies. The study found that accounting principles generally accepted in the United States of America (GAAP) often address issues that are not relevant to smaller, less complex companies, including those that are not public. Some of the most costly and complex standards to implement for a small business were the least relevant and least useful for the reader of the financial statements. 

Many small private companies are normally only required to file income tax returns but lenders and bonding companies are requiring GAAP financials which the companies do not have the accounting resources to prepare. The cost of preparing the GAAP financials for these small private companies often exceeds the benefits.   

The newly established Private Company Council will work directly with the Financial Accounting Standards Board (FASB) to give recommendations of various modifications to GAAP that would be considered beneficial for the small private company. During the first few years the council will meet several times during the year and will be open to the public. Stay tuned for updates on changes to the financial statement reporting standards for private companies as the Private Company Council implements its recommendations.

Financial Regulatory Reform Bill

The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed by President Obama on July 21, 2010. Among the highlights of bill are:

•The establishment of a Financial Stability Oversight Council. This council will identify and monitor companies that engage in activities that could threaten the stability of the financial system. The council will also have the ability, through the Federal Reserve, to break up large firms.

•The establishment of the Consumer Financial Protection Bureau, which will consolidate most of the federal regulation of financial services offered to consumers. Most credit providers, including mortgage lenders, payday loan providers and bank and credits unions with assets over $10 billion will be subject to the new regulations.

•Executive compensation will require a nonbinding shareholder vote. Compensation based on financial statements that are later restated may have to be returned.

•Companies that file with the SEC will be required to disclose in a proxy statement the reasons why they have separated or combined the positions of chairman and CEO.

•The Office of Thrift Supervision will be eliminated and savings-and-loan institutions will now be regulated by the Office of the Comptroller of the Currency, which currently regulates federally chartered banks.

To read the full bill click here.

LMGW Receives Highest Rating in Peer Review Report

LMGW Certified Public Accountants, LLP has received a rating of “pass” related to the system of quality control for the accounting and auditing practice in the most recent peer review.  Pass is the highest rating a firm can receive.  The peer review program is dedicated to enhancing the quality of accounting, auditing and attestation services performed by CPAs in public practice.  Peer reviews are required every 3 years.  For our clients, this ensures that LMGW is providing the highest quality service.  For a copy of our lastest system review report, please click the link below:

Peer Review Report – 2009

Health Care Reform

RIA’s Complete Analysis of the Tax and Benefits Provisions of the 2010 Health Care Act as Amended by the 2010 Health Care Reconciliation Act

The following sections contain RIA’s Complete Analysis of the Tax and Benefits Provisions of H.R. 3590, the Patient Protection and Affordable Care Act, as signed into law by the President on Mar. 23, 2010 ( PL 111-148, 3/23/2010 ), as Amended by H.R. 4872, the Health Care and Education Reconciliation Act of 2010, as signed into law by the President on Mar. 30, 2010 ( PL 111-152, 3/30/2010 . H.R. 3590, the Patient Protection and Affordable Care Act, is generally referred to in the Analysis as the “2010 Health Care Act,” while H.R. 4872, the Health Care and Education Reconciliation Act of 2010, which amends the 2010 Health Care Act, is generally referred to in the Analysis as the “2010 Reconciliation Act”. Read more

Obtaining a Business Loan

One of the most difficult tasks for small business owners is finding money to start and grow their business. A lack of sufficient capital is also the number one reason for the failure of most small businesses. Despite the large bank bailouts and stimulus money, credit is still tight for small business. Being prepared with a package that is comprehensive and anticipates most common lender questions can drastically improve your chances of obtaining the funding you need to make your business prosper. Read more